Please email us info@swkadvocates.com if you would like to conduct a legal review of your business. Within three months of receipt of an audit report, the parliament or district assembly is required to examine and examine the report and take appropriate action. In practice, there have been delays in the consideration of legislators` reports. This has had an impact on the distribution of revenues at the national level. We review the current contractual framework and agreements entered into by the organization to assess compliance with existing legislation. Contractual arrangements include, but are not limited to, employment contracts; supply contracts; licensing agreements; service agreements; partnership agreements and arrangements; collective agreements; Franchise/take-back agreements. When determining the relevance of the criteria, the auditor shall take into account their relevance to the intended users as well as their completeness, reliability and objectivity (neutrality, general acceptance and comparability with criteria used in similar audits). The Companies Act 2015, which repealed the revised Cap 486 Companies Act of 1948 of 2009, regulates the financial reporting requirements of companies, including accounting and auditing, in Kenya. The law stipulates that all companies are required to prepare and submit financial statements and establishes requirements for the preparation, publication, audit and inspection of financial statements. The Act defines prescribed accounting standards as standard accounting practice statements published by one or more professional associations in the fields of accounting and finance that are legally recognized in Kenya. The mandate of the Board of Directors is to issue accounting and internal audit standards to be applied by all government and public sector bodies.
These standards aim to improve the quality of financial reporting and improve compliance with internal controls in all public sector organizations and agencies. We review NSSF, NHIF and tax compliance files and structures. We also provide advice on licensing procedures required by district governments, compliance with environmental laws, and competition and antitrust laws. The Constitution also specifies that the accounts of all Governments and State bodies shall be audited by the Auditor-General established in accordance with article 229. We verify compliance and review bills, fees and mortgages on behalf of the organization. All this to ensure compliance with the Companies Act or any other registration system. In general, we conduct legal audits to uncover unknown business opportunities. We also conduct specialized investigations and audits in the areas of litigation, labor and employment, intellectual property, environment, regulation, business, estate planning/asset protection, government contracts, etc.
Part XXVII of the Companies Act, 2015 requires that the financial statements of corporations be audited, with the exception of corporations that are considered SMEs under the Act. Audits must be carried out by ICPAK members who are in possession of a certificate of practice issued by the Institute in accordance with § 21 of the Audit Act as amended in 2008. Since 1999, ICPAK has adopted ISAs, including any revisions and effective dates published by the IAASB, without any changes. In accordance with its mandate to regulate the audit profession under the Accountants Act 1978, as amended in 2008, the Institute of Certified Public Accountants of Kenya (ICPAK) is responsible for establishing and implementing a mandatory quality assurance (QA) system for all audits. The Central Bank of Kenya (CBK) regulates banks and similar financial institutions in Kenya and deposit-taking SACOs are regulated by the SACCO Companies Regulatory Authority (SASRA), while deposit-free SACOs are regulated by the Ministry of Cooperatives. These regulators maintain appropriate lists of certified public accountants that companies are required to audit in accordance with the ISA. The Insurance Regulatory Authority of Kenya (IRA) regulates insurance companies and requires that the financial statements of insurance companies be reviewed by auditors with respect to certain material matters. An appropriate object is identifiable and may be assessed or measured consistently on the basis of the criteria so that it can be subject to sufficient and appropriate evidence gathering procedures to support the audit opinion or conclusion. The criteria are the benchmarks used to evaluate the subject. Each audit should be subject to criteria appropriate to the circumstances of that audit. It also ensures that policies, programmes or activities are defined by their legal basis or source of funding. The end result is to create appropriate conditions and reinforce the expectation that public bodies and civil servants carry out their tasks effectively, efficiently, ethically and in accordance with applicable laws and regulations.
This authority to conduct any of the above-mentioned public audits includes rules, laws and regulations, budgetary decisions, policies, established codes, agreed terms or general principles governing the sound financial management of the public sector and the conduct of public servants. Subject matter refers to the information, condition or activity measured or evaluated against certain criteria. It can take many forms and have different characteristics depending on the purpose of the exam. Article 226(1) provides for the adoption of an Act of Parliament providing for the keeping of financial records and the audit of the accounts of governments and other public bodies, as well as other measures to ensure effective and transparent financial management. The legal review also lays the foundation for establishing an ongoing legal compliance and prevention program to ensure that the company`s ongoing objectives, structure, and operations are consistent with the latest developments in business and corporate law. To clarify, the Auditor General`s job is to certify that statements reported by a company are true and fair, not to break fraud schemes or identify financial crimes. This is the field of forensic examination. However, the Court of Auditors has the power to carry out judicial audits with Parliament`s consent. The three parties to the public audit are the Auditor General, the audited bodies and the intended users, who are the general public or oversight bodies. The audit shall be carried out in accordance with the identified purpose and established criteria. The modalities for carrying out internal audit for a district government institution include: There are different forms of public audit.