The firm has adopted a risk based approach that, early in the audit process, identifies the areas in the organization’s operations where the risk of misstatement of balances is highest so that greater audit resources can be committed to such areas. This means that the planning and initial audit work must be performed by the lead partner and the senior associate for the purpose of setting direction. Time is spent in understanding operations so that the actual approach used is appropriate.
This use of senior personnel is a feature of our practice which pays dividends by increasing the quality of the audit, minimizing the risk of missing out issues that we should address, including fraudulent actions and providing greater scope for developing value adding recommendations.
Within the broad framework of the risk based approach that is briefly described above we will plan an audit that addresses the following needs:
- Ensuring that benefits from our experience on matters of accountancy, financial statements disclosure and presentation.
- The need to perform the audit as per the set guidelines of the international Ethics standards Board for Accountants Code of Ethics for professional Accountants (IESBA code) together with the ethical requirements that are relevant to our audit of the financial statements in Kenya, and very importantly finalize it within agreed time frames.
- Allocating work to staff with adequate experience so that audit effort is well directed.
- Recognizing that there are many stakeholders or groups in the financial statements of the entity and their needs require being recognized both, in the audit and the communications that follow the audit.
Once the needs are identified, appropriate steps are planned in the correct order. These include:
- Setting out the expectations of the entity and the auditor’s in a letter of engagement which forms the contract between the two.
- Understanding the entity processes by obtaining relevant information on the management structures, accounting practices, administrative and accounting manuals and other relevant information.
- Documenting and testing entity’s systems and evaluating them against good practice in areas such procurement, asset custody and recording procedures.
- Evaluating processes so that any inherent weaknesses, inadequate policies and procedures can be identified.
- Detailed validation of balances to enable us determine whether:
- Proper books have been kept,
- Balances represent the substances of underlying transactions,
- Efficiency and cost effectiveness are in place.
- Verify assets and liabilities as appropriate.
- Form the audit opinion and raise recommendations on matters that require management attention.
3. Past performance References
During the past years the firm has been engaged in various external audits mainly in Private companies, Non-Government organization, listed companies, Youth and women organizations, churches and sub contracts from the office of the Auditor general.
A sample of some of the clients served recently by the firm (Five years) includes;
- Conducted forensic audit of Bedi investments EPZ ltd.
- Conducted consultancy at New garment EPZ ltd.
- Conducted audit for Amsco solutions development co ltd (Group of companies)
- Conducted external auditing for Agribusiness system international in Kenya, Uganda & Tanzania for the last four years.
- Conducted external auditing for Thika Leather works group of companies for the last five years.
- Conducted external auditing for Mt Kenya bottles ltd for the last three years.
- Conducted external auditing for African Women and Child Features Services (AWCFS) for the year 2017 -2019.
- Conducted external auditing for Danish Demining Group (DDG) for the year 2017 and 2019.
- Conducted external audit for the year 2016-2018 county government funded projects as a consultant at PWC at Isiolo, Garissa and Marsabit counties.
- The lead partner has been engaged in various engagements with the office of Auditor General including auditing county governments and parastatals.
- Conducted forensic audits at the County government of Kiambu for the year 2018.
- Conducted forensic audits for SACCOS and cooperatives for the past five years assigned by the ministry of Trade, Industrialization and cooperatives which included Ekeza Sacco, Urithi housing and county tea processing cooperatives.