Statutory Audit Services are done through our sister firm, Ms. Siero & Associates, Certified Public Accountants. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework. The auditor's opinion enhances the credibility of financial statements by providing high, level of assurance.
All companies in Kenya formed under the Companies Act Cap 486 are required to have their accounts audited at the end of each financial year. Consequently, under section 159 of the Companies Act every company is required to appoint an auditor, qualified as per the Accountants Act.
Statutory audits though not legally mandatory are also beneficial to other businesses such as sole traders and partnerships as well. The objective of a statutory audit is to enhance credibility of the business by the auditor's expressing their independent opinion on the reporting of the financial information. Some of the benefits of having an audit include:
- Giving credibility to the accounts of the business and hence enhances the acceptability of the business's financial statements and reports.
- Errors and frauds, which may have been perpetrated in the business transactions, would be detected; and this will have deterrent effect on the employees not to commit such error or fraud in future.
- Banks and other lending financial institutions would require audited accounts before the business can borrow funds.
- For insured business, the last audited accounts would be used in assessing the basis of compensation.
- The various Kenya Revenue Authority departments like Income Tax and VAT departments require the use of audited accounts as the basis for determining tax payable.