Statutory Audit Assurance Services

Statutory Audit Services are done through our sister firm, Siero & Associates, Certified Public Accountants. The objective of an audit of financial statements is to enable the auditor to express an opinion on 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 a 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 for some entities, are also beneficial to other businesses such as sole traders and partnerships. The objective of a statutory audit is to enhance the credibility of a business through the auditor's independent opinion on its financial reporting. Some of the benefits of having an audit include:

• Giving credibility to the accounts of the business, enhancing the acceptability of its financial statements and reports.
• Detecting errors and frauds that may have been perpetrated in business transactions, deterring employees from committing such errors or fraud in future.
• Banks and other lending institutions typically require audited accounts before a business can borrow funds.
• For insured businesses, the last audited accounts are used in assessing the basis of compensation.
• Kenya Revenue Authority departments such as Income Tax and VAT require audited accounts as the basis for determining tax payable.