Month: January 2022

Internal control may be defined as “the whole system of control, financial or otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient way, ensure adherence to the management policies, Read More …

Internal control may be defined as “the whole system of control, financial or otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient way, ensure adherence to the management policies, Read More …

A system of accounting and record keeping will only succeed if there are strong internal control systems. The purposes of these controls are: To ensure that all transactions are recorded properly Errors and irregularities are avoided Assets and liabilities are Read More …

The management of a business enterprise requires that complete and accurate accounting books and other records are maintained due to the following reasons: The business operations are easy to control when proper books and records are maintained Day to day Read More …

The auditor has a lot of interest in the client’s accounting systems due to: The auditor should ascertain the enterprise’s system of recording and processing transactions and asses its adequacy as a basis for the preparation of financial statements The Read More …

Introduction The topic considers the auditor’s interests in both accounting systems and internal control systems. The auditor has a lot interest in accounting and internal control systems since their adequacy will be vital. Strong systems of accounting and internal control Read More …

This form of letter is generally appropriate for client companies. It is not intended to be used in relation to every enterprise, as it must be tailored to specific circumstances. To the directors of XYZ ltd The purpose of this Read More …

The engagement should outline clear the client’s statutory duties and the auditor’s statutory and professional responsibilities and duties. The client’s statutory responsibilities include keeping proper books of accounts as stipulated by Companies Act Cap 486 section 147. The auditor’s statutory Read More …

Paragraph 2 of Kenyan Auditing Standard 1 states “The auditor should adequately plan, control and record his work”. The auditing guideline gives guidance on one of the procedures to be followed before commencement of audit. The purpose of an engagement Read More …

Introduction This topic attempts at explaining the procedure and require of engaging auditor. Before starting any professional engagement, it is important that the professional agree in writing, the precise scope and the nature of the work to be done. This Read More …