Section 690 of The Companies Act No. 17 of 2015: Special auditor's report required if abbreviated financial statement is lodged with Registrar
(1) This section applies when—
(a) the directors of a company lodge an abbreviated financial statement with the Registrar; and
(b) the company is not exempt from audit, or the directors have not taken advantage of any such exemption.
(2) When this section applies, the directors of the company shall also lodge with the Registrar a copy of a special report of the company’s auditor stating that in the auditor's opinion—
(a) the company is entitled to lodge an abbreviated financial statement in accordance with the relevant section; and
(b) the abbreviated financial statement to be lodged is properly prepared in accordance with regulations made for the purpose of that section.
(3) The auditor's report on the company's annual financial statement need not be lodged with the Registrar, but—
(a) if that report was qualified, the directors shall set out in the special report the auditor's report in full together with any further material necessary to understand the qualification; and
(b) if the auditor's report contained a statement under—
(i) section 730(2)(a) or (b); or
(ii) section 730(3), the directors shall set out in the special report that statement in full.
(4) Sections 735, 736 and 738 apply to a special report under this section as they apply to an auditor's report on the company's annual financial statement prepared under Part XXVII.
(5) If an abbreviated financial statement is lodged with the Registrar, a reference in section 676 or 677 to the auditor's report on the company's annual financial statement is to the special auditor's report required by this section.
(6) If the directors of a company fail to comply with subsection (2), each director of the company who is in default commits an offence and on conviction is liable to a fine not exceeding two hundred thousand shillings.
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