Audit & Assurance Services in Kenya.
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.
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Our Kenya Team of Auditors will get back to you with all required details to perform and Audit and Assurance Service
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.
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 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 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.
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.
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.
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.
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.
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.
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.
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 Conclusions and Reporting
After the auditor collects all evidence he must now form his opinion on the basis of the following criteria,
- all relevant accounting standards were applied at all times
- financial statements are in compliance with all regulations and statutory requirements
- all material information has been disclosed
Frequently Asked Questions about Audit & Assurance services in Kenya.
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.
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