Starting or running a business?
Discover everything you need to know about doing business in your country from one of the Ye! country guides. We have kick-started a few and will be adding more. Check it out and stay tuned!
Auditing
What is auditing?
An audit is an examination and verification of a company’s financial and accounting records and their supporting documents by a professional, such as a Certified Public Accountant.
The Companies Act 2015 introduced a regime for SMEs, which exempts them from audits, but stipulates that they must prepare financial statements and submit the statements as returns to the register for every reporting period.
Under Section 711 of the Act, SMEs are defined as companies that (i) do not have a turnover of more than fifty million shillings in a financial year and (ii) the value of its net assets specified in its balance sheet at the end of the year does not total more than twenty million shillings.
What are the audit processes in this country?
Regarding the audits, the law requires companies to appoint auditors who are Institute of Certified Public Accountants of Kenya (ICPAK) members. Meanwhile, prepare the following documents in English:
- All sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;
- All sales and purchases of the company;
- The assets and liabilities of the company
ICPAK Audit Manual contains all forms and explanations pertaining to audit processes in the country.
