When a business is formed, its ultimate goal is often to generate profit. Profit, in its simplest form, is the excess of revenue over expenses. While businesses focus on creating value, building products, or delivering services, an essential component in sustaining profitability often goes unnoticed: financial oversight. Financial oversight involves carefully monitoring how money is…
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: 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…
Why Outsourcing Accounting Services in Kenya is Essential for Business Growth Accounting is systematically recording, summarizing, and reporting financial transactions within a business. It serves as a fundamental pillar of any successful enterprise by ensuring financial stability and compliance with regulatory requirements. Traditionally, accounting has been perceived as a mundane process involving numbers and financial…
Transparency is the foundation of a trustworthy and sustainable business. For small and medium-sized enterprises (SMEs), statutory and external audits in Kenya play a crucial role in ensuring financial accountability, compliance, and investor confidence. Auditors provide independent financial assessments based on globally recognized accounting standards, including International Accounting Standards (IAS), International Financial Reporting Standards (IFRS),…
Cybersecurity refers to the technologies, processes, and practices designed to protect networks, systems, and data from cyber threats, unauthorized access, and damage. In the past, individuals, businesses, and government entities primarily faced traditional crimes such as fraud, identity theft, and money laundering. However, with technological advancements and the widespread use of the internet, these crimes…
Public Benefit Organizations (PBOs) play a crucial role in addressing social, economic, and humanitarian issues. According to the Public Benefit Organizations Act 2013, a PBO is defined as a voluntary, autonomous, non-partisan, and non-profit entity that operates locally, nationally, or internationally to engage in activities that serve the public good. These organizations depend on donor…
Internal auditing in Nairobi goes beyond being a mere compliance function. It is an independent and objective process that not only provides assurance but also offers advisory services to help organizations operate more effectively. By systematically reviewing an organization’s systems, processes, and procedures, internal auditors identify vulnerabilities, detect irregularities, and recommend corrective actions before fraud…
Legal Notice No. 105 of 2024 on 18 June 2024 (the Effective Date) by the Cabinet Secretary for the National Treasury and Economic Planning (the Cabinet Secretary) was gazetted. The legal notice sought to repeal the Income Tax (Charitable Donations) Regulations, 2007 (the Repealed Rules). Paragraph 10 of the First Schedule to the Income Tax…
Pension schemes in Kenya are vital financial instruments that safeguard the retirement benefits of millions of people. However, managing such schemes comes with significant responsibilities, requiring a high degree of accuracy, compliance, and oversight. This is where auditors step in, playing a pivotal role in ensuring the integrity and reliability of pension schemes. This is…
Financial Institutions are organizations that provide financial services to individuals, businesses, and governments. These institutions include Banks, micro-finances, insurance companies, pension schemes, unit trusts, asset management, cooperative societies, and digital credit providers. Anti-Money Laundering (AML) policies are significant and very critical for financial institutions in Kenya to develop and implement. Adherence to these policies is…
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