Audits & Assurance services in Kenya are all about Checks, Controls and assurance, which may be complied statutorily or even be held voluntarily by the entity to assure the true view of business in terms of finance. You can rely on us for end to end audits and assurance services in Kenya. Be it related to about Financial Statements, business processes or Information Technology.

What is an Audit?

The term audit usually refers to a review of the financial statement. A financial audit is an unbiased examination and evaluation of the financial statements of an organisation to ensure that the financial records represent a true and fair view of the business transactions they claim to perform.

What is Assurance Service?

Assurance services are an independent professional service ordinarily provided by chartered accountants. Assurance services can include an examination of any financial document or transaction, such as a loan, any contract or arrangement, etc.

What We Do For Clients

We engage with our clients on a continuous basis to ensure adherence to statutory and regulatory requirements, including disclosures and provide constructive, value-added delivery.

Statutory Audit

A statutory audit is a legally required review of the correctness and accuracy of a company’s financial statements and related records. The sole objective of a statutory audit is to assess whether an organisation provides a fair and correct representation of its financial position by examining data such as accounting records, bank balances and commercial transactions.

Internal Audit

Internal auditing is an objective assurance and consulting activity intended to add value and improve an organisation’s business transactions. It can help an organisation fulfil its strategic objectives by taking a systematic, well-organised approach to assessing and enhancing the effectiveness of risk management, control, and governance processes.

Tax Audit

Tax Audit involves an audit of financial records of a business in compliance with provisions of the Income-tax Act in India and providing disclosures in the prescribed formats. We have a team of experts who work with different taxes like Income tax, PAYE, service tax, VAT tax etc. Our satisfied clients have rated us as the best Income tax audit firm in Kenya.

Fixed Assets Audit

Auditing fixed assets is vital to ensure that accounting for capital assets and depreciation complies with the objectives of management. Fixed asset audit helps to prepare the accurate balance sheet. Hence it ensures regulatory compliance. Also, fixed asset audits provide better internal control.

Stock Audit

Sock or inventory audit means physical verification of stock of a company or institution. There are many stock audits, depending on the purpose, and every stock audit requires a different approach. Every business organisation at least needs to conduct a stock audit once a year to update and ensure that the physical stock match.

Management Audit

This involves an audit of functions of operations management department of an organisation for acquisitions and company mergers. In this case, our auditing and assurance services in kenya, 2Max Group, closely works with a specific department to help them improve their overall efficiency with our Audit Service.

Revenue Audit

A Revenue audit is where your tax returns are compared to your tax records. There are generally three reasons for which we can decide to audit you: Screening tax returns – this is where we look at your returns and compliance history for any patterns or trends.

Due Diligence

Due diligence (DD) is an extensive process undertaken by an acquiring firm in order to thoroughly and completely assess the target company’s business, assets, capabilities, and financial performance. There may be as many as 20 or more angles of due diligence analysis.

Investigative/Forensic Audit

A forensic audit is an examination and evaluation of a firm’s or individual’s financial records. During a forensic audit, an auditor seeks to derive evidence that could potentially be used in court. A forensic audit is used to uncover criminal behavior such as fraud or embezzlement

Audit and Assurance

The focus of the audit and assurance services in Kenya is to provide you with a quality product that suits your needs, offer helpful suggestions that will help improve your operations, provide financial guidance when necessary, and provide a level of service that will result in a long-lasting relationship.

Basic Principles Governing an Audit and Assurance services In Kenya.

Auditing is a systematic and scientific procedure of inspection of the financial statements of an organization. And like any scientific procedures, the audit also has certain principles and rules that govern it. These principles are the Standards of Auditing or the Auditing and Assurance Standards (AAS). Let us now take a look at some basic principles governing an Audit.

Integrity, Independence and Objectivity

The auditor has to be honest while auditing, he cannot be favoring the organization. He must remain objective throughout the whole process, his integrity must not allow any malpractice.

Another important principle is independence. So the auditor cannot have any interest in the organization he is auditing, which allows him to be independent and impartial at all times.


The auditor has access to a lot of sensitive financial information of the organization. It is important that he respect the confidential nature of such information and documents.

He cannot disclose any sensitive information to any third party unless it is a requirement by law. And he must also be very careful with documents, certificates etc. that the organization entrusts to him.

Skill & Competence

The auditor must be experienced and trained in the procedures of auditing, i.e. must be qualified as an auditor. And as a professional, he must be up to date on recent changes, announcements, rules etc.

If necessary he can undergo training and workshops to stay up to date with the recent auditing and accounting procedures.

Work Performed by Others

The scope of audit at times can be very vast. So an auditor has employees, delegates and other people who work under him.

However, the auditor will continue to be fully responsible for the work done by these people working for him. So the auditor must carefully supervise and review such work and be reasonably sure of the accuracy of such work.


In most cases the auditor maintains an audit notebook, an audit plan and auditing file. It is important the auditor keeps a record of important documents with respect to his audit work, as it is evidence of the work the auditor has done. And the client is inclined to these documents and files if he wishes to inspect the work.


An audit plan allows the auditor t plan out his work and enables him to be more efficient and timely. Every audit plan is different as it has to be customized according to the type of organization, the kind of business they conduct, the scope of the audit and assurance services in kenya, the efficiency of the internal controls etc.

Audit Conclusions and Reporting

After the auditor collects all evidence he must now form his opinion on the basis of the following criteria,

  1. all relevant accounting standards were applied at all times
  2. financial statements are in compliance with all regulations and statutory requirements
  3. all material information has been disclosed
Accounting Systems and Internal Controls

The auditor has to assure that the accounts of the organization are accurate and represent a true and fair picture of the financial status of the company. Also, the auditor must ensure that all material information has been recorded in the accounts. Testing the internal controls system is also important as it helps determine the same

Audit Evidence

The auditor must collect enough evidence to support his final opinion. This collection of such evidence is done by compliance and substantive procedures. There are two sources of this evidence – internal and external. Also, external sources of evidence are always more reliable.

Frequently Asked Questions about Audit & Assurance services in Kenya.

What is the objective of conducting an Audit?

The objective of conducting an Audit is to form an independent opinion on the financial statements of an organisation. The opinion comprises whether the financial statements show a true and fair view of the entity’s financial performance & financial position and have been properly prepared in accordance with the applicable Accounting Standards and reporting framework.

What is the difference between Audit and Assurance Services?

The significant differences between Audit and Assurance services are as follows:

* Audit is a process of closely monitoring the accounting information presented in a company’s financial statements. On the other hand, Assurance involves assessing and analysing different operations, processes, and procedures.

* Audit often requires more time and resources as compared to assurance services.

* Audit is the first step, whereas the assurance procedure starts once the Audit is complete.

* Audit is a mode to disclose any fraudulent or dishonest activity, i.e., misuse of funds or misrepresentation of facts. Conversely, Assurance specialises in assessing and improving the quality of the information in a company. It helps in decision making in an organisation.

* Auditors have extensive rights to access the financial data and records for carrying out the Audit. There are normally fewer rights granted to the firm conducting an assurance process.

What’s the difference between Audit (internal) and our external auditors?

External auditors perform annual audits for the purpose of expressing an opinion as to whether the financial statements of the university or health system fairly present their financial position and performance and whether the financial statements conform to Generally Accepted Accounting Principles (GAAP). External auditors audit the financial statements of many clients. For example, the Auditor of Public Accounts is a Virginia state agency whose responsibility is to audit all state agencies, including public universities. The health system uses independent certified public accounting (CPA) firms to conduct its external audit.

Internal Audit is a part of the organization it audits, but remains independent of operations and management. Internal Audit’s focus is to determine whether the organization’s procedures and internal controls are sufficient for the achievement of management’s business objectives. Internal auditors perform different kinds of audits, not just financial, and may also perform special projects, investigations or management requests.

What is the Duty of an Auditor?

As per Section 143 of the Companies Act, 2013, the major duties of an auditor include:

* Duty to enquire on certain matters

One of the auditor’s main duties is to make inquiries when he finds it necessary. A few examples of such enquiries are:

* whether any personal expenses have been booked in the Revenue Account

* whether loans made by the company have been shown as deposits

* Duty to comply with Auditing Standards

The Auditing Standards aid the auditor in conducting his audit duties with relevant efficiency and accuracy. The auditor must comply with these standards while performing his duties.

* Duty to report on frauds

Since an auditor examines the books of accounts of a company, sometimes he may uncover a fraudulent transaction. In such cases, he must report the fraud to the Central Government or the Board of the Company, as the case may be applicable.

* Duty in case of a branch audit

In a case where the auditor is the branch auditor and not the auditor of the entity, he is responsible for assisting in the completion of the branch audit. He shall prepare a report based on the accounts of the branch as examined by him and send it across to the company auditor. The company auditor will then incorporate this report into the main audit report of the company.

Duty to report

The auditor is liable for preparing an audit report based on the examination of the company’s financial statements. He must ensure that the books of accounts and financial statements comply with relevant laws such as the Companies Act 2013.

In addition to this, he must ensure that the entity’s financial statements depict a true and fair view of the entity’s affairs at the end of its financial year.

* Duty to state the reasons for qualification or negative report

If any matters required to be included in the audit report are answered negatively or with a qualification, the auditor must state the reasons thereof.

Duty to sign the audit report

The auditor must sign the audit report issued by him after carrying out the audit procedure.

What is the Standard Setting Process of Audit and Assurance in Kenya?

The organization must establish a system of quality control designed to provide it with reasonable assurance that the business and its employees comply with professional standards, regulatory requirements, and legal requirements. The reports issued by the company or its engagement partner must be appropriate as per the circumstances.

Leadership Responsibilities for Quality

The policies and procedures in an organization must be designed to promote an internal culture quality that is essential in performing engagements. If appropriate, the organization’s highest authority must assume ultimate responsibility for system quality control of Audit and assurance services. Any individual who is assigned the responsibility for a quality control system must have sufficient and appropriate experience and adequate authority.

Acceptance and Continuance of Client Relationships and Specific Engagements

For the purpose of audit and assurance the policies and procedures for the acceptance and continuance of client relationships under the specific engagements are designed to provide it with reasonable assurance to undertake and continue the commitments in the following circumstances: Has considered the integrity of the customer. It is capable and also has time and resources to do so. Must comply with all the ethical requirements and it also needs to document how the issues regarding the ethical requirements were resolved.

Ethical Requirements

The firm must set a proper policy and procedure for Audit and assurance, which must be complied by all concerned persons with relevant ethical requirements. The Policies and procedures must focus on the fundamental principles, For example. The leadership of the organization. Education and training. Monitoring and. A process for dealing with non-compliance.

Human Resources

The policies here for the purpose of Audit and assurance services are designed to provide assurance with regard to sufficient personnel with the capabilities and competence.

Engagement Performance

The policies here for the purpose of Audit and assurance are designed to provide assurance with regard to sufficient personnel with the capabilities and competence.

Besides these core audit services, we undertake specially customized assignments:

  • Testing documentation and internal controls that belong to financial reporting.
  • Data quality and controls – Assessments.
  • Assisting in designing, implementation and testing of controls.
  • Advance control structure and implementation.
  • Preparation of process cycles/ process flows and related documentation.
  • Business process controls – advisory.
  • Gap Identification & Analysis.
  • ERP controls – Assessment, Evaluations and implementation reviews