Month: January 2022

Section 162 stipulates that: (1) The auditors shall make a report to the members on the accounts examined by them, and on every balance sheet, every profit and loss account and all group accounts laid before the company in general Read More …

Section 161 of Companies Act Cap 486 states: (1)A person or firm shall not be qualified for appointment as auditor of a company unless he, or in the case of a firm, every partner in the firm is the holder Read More …

Section 160 of the Companies Act Cap 486 states (1) Special notice shall be required for a resolution at a company’s annual general meeting appointing as auditor a person other than a retiring auditor or providing expressly that a retiring Read More …

Section 159 of the companies Act Cap 486 states: (1) Every company shall at each annual general meeting appoint an auditor or auditors to hold office from the conclusion of that, until the conclusion of the next, annual general meeting. Read More …

Introduction Statutory audits are carried out as guided by the rules set out in the Companies Act Cap 486. The topic outlines the rules on the requirement for a company to follow. It outlines the rules on the auditor’s appointment, Read More …

 It is an expensive operation because audit fees and audit expenses are usually too high for small companies. If the report arising out of audit is bad, it can lead to the failure of the business (a qualified report).  An Read More …

Provides assurance and credibility to the accounts for the benefit of potential investors. Used for detection of errors and frauds which could lead to the failure of an organization. Audited accounts are used by the organization to raise finance from Read More …

There are three qualities necessary for an independent auditor. These are: Competence Independence and Integrity Competence Any person who intends to practice as an audit must be thoroughly trained and must prove his/her competence. In Kenya only members of ICPAK Read More …

The auditor can from time to time provide other services other the auditing. These services may include:  Writing up the books of account Balancing books of accounting Setting up accounting systems Computerizing manual accounting systems Financial advise Mergers and take Read More …

There are two main objectives of auditing: Primary objective and Subsidiary objective. The primary objective of any audit is to produce a report regarding the truth and fairness of the company’s financial statements so that any users of these statements Read More …