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Auditor
Further point to note is which modern companies can be exclusively large along with multi-national activities. So preparing accounts for that a group becomes a widely complex operation which could include bringing together and summarizing the accounts of subsidiaries along with differing accounting systems. Each account is needed to conform to very complex and detailed requirements of the Companies Act (CAP 486) and to the used of the many International Financial Reporting Standards (IFRSs) also. These points taking into consideration hence, it becomes essential which to give credibility to the accounts an independent qualified expert be appointed to objectively inspects the accounts and then report his findings to each interested parties, primarily the shareholders as needed by the Companies Act, but also to relevant regulatory authorities and other providers of funds.
Therefore the providers of funds are divorced from the control of those funds it would seem logical which the controllers should on a usual basis provide a report to the providers of the funds on changes in the claims resources. This report of the directors and controllers according to Kenya Companies Act should be into the form of annual accounts that consist of the profit and loss account and balance sheet. The accounting profession has extended the accounts through requiring which a Cash Flow Statement be appended to the accounts as part of the accounts also.
Such independent expert is called the auditor. The report of his investigations an audit report and his investigations constitute. Resolving the problems of credibility apart from an audit is necessary to ensure which the utilization of the Companies Act and the International Financial Reporting Standards have been complied along with. The accounts are referred to like financial statements.
Sufficiency of audit evidence The audit evidence should in total enable the auditor to form an opinion on the financial statements. Sufficiency is a measurement of the quantity
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