Introduction

The primary objective of an audit firm in Kenya when conducting an independent audit of financial statements—aligned with the International Standards on Auditing (ISA 200)—is twofold:

1. To obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. This empowers the auditor to express an informed opinion on whether the statements are fairly presented in accordance with the applicable financial reporting framework.
2. To report on the financial statements and communicate key audit findings in accordance with ISA requirements.

Beyond issuing an audit opinion, an audit firm in Kenya plays a crucial role in strengthening organizational governance by communicating significant findings to those charged with governance. These findings include:

1. Significant risks and internal control deficiencies – pinpointing vulnerabilities that may compromise the integrity of financial reporting.
2. Key audit matters – areas deemed most significant during the audit.
3. Unadjusted misstatements – financial reporting errors that were not corrected.
4. Estimates and disclosures with high uncertainty – judgments that can materially impact results.
5. Non-compliance with laws and regulations – highlighting regulatory breaches.
6. Ethical considerations and auditor independence – upholding objectivity and ethical integrity.
7. Significant difficulties encountered – detailing obstacles that affected audit quality or timing.

Making Audit Findings in Kenya Actionable

For audit findings to truly drive improvement, an audit firm in Kenya must present them in a way that is:

1. Timely
2. Clear
3. Constructive

Each finding should include detailed information on the issue, its implications, and specific, practical recommendations. Evidence supporting the finding, along with opportunities for follow-up discussions, should be part of the communication process.

Best Practices for Communicating Audit Findings

Here are proven strategies that any reputable audit firm in Kenya should adopt to make findings more actionable:

1. Identify Those Charged with Governance

Understand who governs the entity—be it a board, trustees, audit committee, or senior management. Tailoring communication to suit their roles and expectations enhances engagement.

2. Structure the Report Effectively

Organize audit findings logically—beginning with audit objectives, followed by key observations, and concluding with targeted, grouped recommendations. This makes the report user-friendly and easier to act upon.

3. Use Clear and Concise Language

Avoid technical jargon. Use plain language to ensure that all stakeholders, regardless of their accounting background, understand the findings.

4. Prioritize Issues

Rank findings by risk level. Start with high-risk issues that demand immediate attention. This helps governance bodies focus on what matters most.

5. Facilitate Discussions

Encourage feedback through follow-up meetings. These discussions help clarify findings and foster a collaborative approach to resolving issues.

6. Develop and Implement Action Plans

Work with management to define clear next steps, set timelines, and assign responsibilities. An audit firm in Kenya that supports follow-through ensures that corrective actions are actually implemented.

Final Thoughts

Ndakala Advisory a leading audit firm in Kenya does more than verify financial accuracy—it enhances accountability and governance by providing meaningful insights. By communicating findings effectively and supporting the development of actionable responses, audit firms help organizations not just comply—but thrive.