Professional External & Statutory Audit in Nairobi
An external audit is an independent examination of your financial statements by a qualified CPA firm that is not part of your organization. Our external and statutory audit services in Nairobi provide an objective, third-party opinion on whether your financial statements give a true and fair view of your financial position — giving shareholders, lenders, regulators, and donors the confidence they need in your reporting. We conduct all audits in compliance with International Standards on Auditing (ISA) as adopted by ICPAK.
Businesses That Need External & Statutory Audit
- Limited liability companies required to conduct annual statutory audits
- NGOs and donor-funded organizations needing independent audit reports
- SACCOs and cooperative societies with regulatory audit obligations
- Businesses seeking bank financing that requires audited financial statements
- Shareholders requiring independent verification of management's financial statements
- Any entity legally mandated to have its financial statements audited
Common Issues We Address
Non-compliance with the Companies Act requirement for annual statutory audits
Lack of independent assurance for shareholders, lenders, and donors
Unqualified or delayed audits causing missed regulatory filing deadlines
Insufficient credibility in financial statements when approaching external stakeholders
Potential conflicts of interest in financial statement preparation
Need for unbiased assurance for board or shareholder decision-making
What You Receive from Us
Step-by-Step Approach
Engagement & Planning
We assess your business, confirm our independence, understand the risk environment, and develop a risk-based audit plan tailored to your operations.
Fieldwork & Testing
Our audit team conducts substantive testing, verifies balances, confirms third-party balances, and evaluates internal controls.
Draft Findings & Management Letter
We present draft observations to management, discuss control gaps, and finalize recommendations for improvement.
Audit Opinion & Filing Support
We issue a formal independent auditor's report and signed financial statements for statutory submission, with support for regulatory filing.
Why Professional Assistance Matters
An external audit must be conducted by an independent, qualified CPA firm with a valid practicing certificate to be valid. The auditor must comply with International Standards on Auditing and maintain professional independence throughout the engagement. A professional external audit provides the credibility and assurance that regulators, lenders, shareholders, and donors require — and identifies control weaknesses before they become financial problems.
Results You Will See
- A clear audit plan and timeline agreed before fieldwork begins
- Minimal disruption to your daily business operations
- An independent audit opinion on your financial statements
- A management letter with actionable control improvement recommendations
- Audited financial statements ready for regulatory submission
- Support with filing deadlines and regulatory requirements
Kenyan Regulatory & Statutory Context
Under the Companies Act of Kenya, incorporated entities must present audited financial statements at their Annual General Meeting. NGOs must submit audited accounts to the NGO Coordination Board. SACCOs are audited under the SACCO Societies Act and must file with SASRA. The audit must be conducted by a registered CPA firm in compliance with ISA as adopted by ICPAK. Independence is required in both appearance and fact under ICPAK's Code of Ethics.
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Explore the Full Service
Learn more about our comprehensive Audit & Assurance Services in Nairobi — including all sub-services, packages, and how we tailor our approach to your business.
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Beyond audit, our Nairobi CPA team provides complementary services that may also support your business:
Industries We Serve
We tailor our audit services for businesses across these sectors:
View all industries we serveExternal & Statutory Audit — Frequently Asked Questions
What is an external audit and why do I need one?
An external audit is an independent examination of your financial statements by a qualified CPA firm outside your organization. You need one if you are a registered company, NGO, SACCO, or any entity required by law or by lenders and donors to present audited financial statements. It provides independent assurance that your financial reporting is accurate and reliable.
What is the difference between an external audit and an internal audit?
An external audit is conducted by an independent firm outside your organization to provide assurance on financial statements to external stakeholders. An internal audit is conducted by or for management to evaluate internal controls, risk management, and operational efficiency. Both serve different but complementary purposes.
Who is required to have a statutory audit in Kenya?
All incorporated companies, NGOs, SACCOs, cooperative societies, and certain other entity types are required by Kenyan law to have their financial statements audited annually. The specific requirements vary by entity type and sector. We help you determine which requirements apply to your organization.
Can the same firm do both our accounting and statutory audit?
There are independence considerations. A firm that prepares your financial statements may face limitations on providing an independent audit opinion on those same statements. We can advise on the appropriate separation of roles to maintain audit independence.
Need Expert Audit Assistance?
Speak directly with a Certified Public Accountant regarding your audit and assurance needs in Nairobi.
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Nairobi, Kenya