Section 709 of The Companies Act No. 17 of 2015: Requirements for auditing financial statements
(1) The directors of a company shall ensure that the company’s annual financial statements for a financial year are audited in accordance with this Part unless the company—
(a) is exempt from audit under section 711 or 714; or
(b) is exempt from the requirements of this Part under section 716.
(2) A company is not entitled to any such exemption unless its balance sheet contains a statement by the directors to that effect.
(3) A company is not entitled to exemption under either of the provisions referred to in subsection (1)(a) unless the its balance sheet contains a statement by the directors to the effect that—
(a) the members have not required the company to obtain an audit of its financial statements for the relevant financial year in accordance with section 710; and
(b) the directors acknowledge their responsibilities for complying with the requirements of this Act with respect to accounting records and the preparation of financial statements.
(4) The directors shall ensure that the statement required by subsection (2) or
(3) appears on the balance sheet above the signature required by section 652.
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- Section 710 - Right of members to require audit
(1) The members of a company that would otherwise be entitled to exemptionfrom audit under any of the provisions referred to in section 709(1)(a) may by notice under this section require it to obtain...
- Section 711 - Small companies: conditions for exemption from audit
(1) A company that complies with the conditions of subsection (2) in respect of a financial year is exempt from the requirements of this Act relating to the audit of accounts for that year.
(2) The...
- Section 712 - Companies excluded from small companies exemption
A company is not entitled to the exemption conferred by section 711 if it was a public company, or carried on a banking or insurance business, at any time within the relevant financial year.
- Section 713 - Availability of small companies exemption in case of group company
(1) A company is not entitled to the exemption conferred by section 711 in respect of a financial year during any part of which it was a group company unless— (a) the conditions specified in...
- Section 714 - Conditions for exemption from audit for dormant companies
(1) A company is exempt from the requirements of this Act relating to the auditof financial statements in respect of a financial year if—
(a) it has been dormant since its formation; or
(b) it has...
- Section 715 - Companies excluded from dormant companies exemption
A company is not entitled to the exemption conferred by section 714 if it was at any time within the relevant financial year a company that was—
(a) an insurance company, a banking company or an...
- Section 716 - Exemption from audit for non-profit making companies
(1) The requirements of this Part as to audit of financial statements do not apply to a company for a financial year if it is non-profit making and its financial statements are subject to audit by the...
- Section 717 - Appointment of auditors of private company: general
(1) A private company shall appoint an auditor or auditors for each financial year of the company, unless the directors resolve that an audited financial statement is unlikely to be required.
(2) For...
- Section 718 - Appointment of auditors of private company: default power of the Cabinet Secretary
(1) If a private company has failed to appoint an auditor within the period forappointing auditors, the company shall, within seven days after the end of that period, notify the Registrar of the...
- Section 719 - Term of office of auditors of private company
(1) An auditor or auditors of a private company hold office in accordance with the terms of their appointment, subject to the requirements that—
(a) they do not take office until any previous auditor...
- Section 720 - Members of private company may block automatic re-appointment of auditor
(1) An auditor of a private company is not taken to be re–appointed by theoperation of section 719(2) if the company has received notices under this section from members who hold at least the...
- Section 721 - Appointment of auditors of public company: general
(1) A public company is required to have an auditor or auditors for each financial year of the company, unless the directors reasonably resolve otherwise on the ground that an audited financial...
- Section 722 - Appointment of auditors of public company: default power of the Cabinet Secretary
(1) If an auditor or auditors have not been appointed for a public company within the period for appointing auditors, the company shall, within seven days after the end of that period, notify the...
- Section 723 - Term of office of auditors of public company
(1) The auditor or auditors of a public company hold office in accordance withthe terms of their appointment, subject to the requirements that—
(a) they do not take office until the previous auditor...
- Section 724 - Fixing of auditor’s remuneration
(1) If an auditor is appointed by the members of a company, the membersshall fix the auditor’s remuneration, either by ordinary resolution or in such as the members may, by ordinary resolution,...
- Section 725 - Company to disclose terms of audit appointment
(1) A company shall disclose the terms on which the company’s auditor is appointed, remunerated or is required to carry out his or her responsibilities.
(2) In making a disclosure under subsection...
- Section 726 - Regulations to provide for safeguarding disclosure of nature of services provided by company’s auditor
The Cabinet Secretary shall ensure that the regulations provide for safeguarding the disclosure of the nature of any services provided for a company by the company’s auditor, whether in the auditor’s...
- Section 727 - Auditor’s report on annual financial statement of company
(1) An auditor shall make a report to the members of the company on all annualfinancial statements of the company of which copies are, during the auditor’s tenure of office—
(a) in the case of a...
- Section 728 - Auditor's report on directors' report
The auditor shall state in the auditor’s report on the company’s annual financial statement whether in the auditor’s opinion the information given in the directors’ report for the financial year for...
- Section 729 - Auditor’s report on auditable part of directors’ remuneration report
(1) In reporting on the annual financial statement of a quoted company, theauditor shall—
(a) report to the company’s members on the auditable part of the directors’ remuneration report;...
- Section 730 - Responsibilities of auditor
(1) In reporting on the annual financial statement of a company, the company’s auditor shall carry out such investigations as will enable the auditor to form an opinion—
(a) whether adequate...
- Section 731 - Auditor's right to information
(1) An auditor of a company—
(a) has a right of access at all times to the company's accounting records and financial statements, in whatever form they are held; and
(b) may require any of the...
- Section 732 - Auditor's right to information from foreign subsidiaries
(1) If a parent company has a subsidiary undertaking that is not a body corporate incorporated in Kenya, the auditor of the parent company may require it to obtain information or explanations for the...
- Section 733 - Auditor's rights to information: offences
(1) A person who makes a statement, whether oral or written containing information or explanations that the auditor requires, or is entitled to require, under section 731—
(a) knowing that the...
- Section 734 - Auditor's rights in relation to resolutions and meetings
(1) In relation to a written resolution proposed to be agreed to by a privatecompany, the company’s auditor is entitled to receive all such communications relating to the resolution as are required to...
- Section 735 - Auditor to sign and date auditor’s report
(1) Subject to subsection (2), an auditor shall—
(a) sign and date the auditor's report; and
(b) ensure that the auditor's name is prominently displayed in the report.
(2) If the auditor is a firm,...
- Section 736 - Name of auditor to be stated in published copies of auditor’s report
(1) A company shall not publish a copy of an auditor’s report that relates to thecompany unless the copy—
(a) state the name of the auditor and, if the auditor is a firm, the name of the person who...
- Section 737 - Circumstances in which auditors’ names may be omitted from published copies of auditors' report
(1) The auditor’s name and, if the auditor is a firm, the name of the person whosigned the report as senior statutory auditor, may be omitted from—
(a) published copies of the report; and
(b) the...
- Section 738 - Offences in connection with auditor's report
(1) This section applies—
(a) if the auditor is a natural person — to that person and any employee or agent of that person who is eligible for appointment as auditor of the company; and
(b) if the...
- Section 739 - Resolution removing auditor from office
(1) The members of a company may remove an auditor from office at any time.
(2) The power to remove an auditor under subsection (1) is exercisable only(a) by ordinary resolution at a meeting; and...
- Section 740 - Special notice required for resolution removing auditor from office
(1) Special notice is required for a resolution at a general meeting of a company removing an auditor from office.
(2) On receipt of notice of such an intended resolution, the company shall...
- Section 741 - Notice of resolution removing auditor from office
(1) Within fourteen days after a resolution is passed in accordance with section739, the company shall lodge a copy of the resolution with the Registrar for registration.
(2) If a company fails to...
- Section 742 - Rights of auditor who has been removed from office
A person who has been removed from office as auditor by resolution under 739 has the same rights in relation to a general meeting of the company— (a) at which the person's term of office would...
- Section 743 - Failure to re-appoint auditor: special procedure required for written resolution
(1) In this section, “outgoing auditor”, in relation to a private company, means the auditor of the company whose term of office ended, or is to end, at the end of the period for appointing...
- Section 744 - Failure to re-appoint auditor: special notice required for resolution at general meeting
(1) In this section, “outgoing auditor”—
(a) in relation to a private company—means the auditor of the company whose term of office ended, or is to end, at the end of the period for appointing...
- Section 745 - Resignation of auditor
(1) An auditor of a company may resign from office by lodging a notice to thateffect at the registered office of the company.
(2) The notice is not effective unless it is accompanied by the...
- Section 746 - Notice to Registrar of resignation of auditor
(1) Within fourteen days after an auditor of a company has resigned, the company shall lodge with the Registrar for registration a copy of the notice of resignation.
(2) If a company fails to lodge...
- Section 747 - Rights of resigning auditor
(1) This section applies if an auditor’s notice of resignation is accompanied by a statement of the circumstances connected with the resignation.
(2) A resigning auditor may deposit with the notice...
- Section 748 - Statement by auditor on ceasing to hold office to be lodged with company
(1) If an auditor of an unquoted company ceases for any reason to hold office, the auditor shall lodge at the registered office of the company a statement of the circumstances connected with the...
- Section 749 - Company’s duties in relation to statement
(1) This section applies in respect of a statement lodged under section 748 that states the circumstances in which an auditor of a company ceased to hold office.
(2) Within fourteen days after the...
- Section 750 - Auditor to lodge copy of statement with Registrar
(1) Unless within twenty-one days from and including the day on which the auditor lodged a statement in accordance with section 748 the auditor receives notice of an application to the Court under...
- Section 751 - Duty of auditor to notify appropriate audit authority
(1) An auditor who ceases to hold office before the end of the term for which the auditor was appointed shall notify the appropriate audit authority.
(2) The auditor shall state in the notice that...
- Section 752 - Duty of company to notify appropriate audit authority if auditor ceases to hold office before end of auditor’s term
(1) If an auditor ceases to hold office before the end of the auditor’s term of office, the company shall notify the appropriate audit authority of that fact.
(2) The company shall include in the...
- Section 753 - Appropriate audit authority to notify prescribed account body of cessation of auditor’s appointment
(1) As soon as practicable after receiving a notice under section 751 or 752,the appropriate audit authority—
(a) shall inform the Cabinet Secretary and the Institute of Certified Public Accountants...
- Section 754 - Meaning of “appropriate audit authority” for purpose of this Division
In this Division, “appropriate audit authority” means such body as is designated by the regulations as the appropriate audit authority for the purposes of this Division.
- Section 755 - Effect of casual vacancies
In an auditor of a company ceases to hold office for any reason, any surviving or continuing auditor or auditors may continue to act in relation to the company.
- Section 756 - Members’ power to request website publication of audit concerns
(1) If members of a quoted company propose to raise at the next general meeting of the company at which a financial statement of the company is to be presented a matter relating to—
(a) the audit of...
- Section 757 - Requirements as to website availability
(1) A quoted company to which a request under section 756 is made shall make the information to be published for the purposes of that section available on a website that—
(a) is maintained by or on...
- Section 758 - Website publication: company’s supplementary duties
(1) A quoted company shall, in the notice that it gives of its financial statementmeeting, draw attention to—
(a) the possibility of a statement being placed on a website in accordance with requests...
- Section 759 - Website publication: offences
(1) If a quoted company fails to comply with a requirement of section 757(1) or(3) or 758(1) or (3), the company, and each officer of the company who is in default, commit an offence and on conviction...