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Section 778 of The Companies Act No. 17 of 2015: Power of Cabinet Secretary to recognise qualifications of foreign auditors for purposes of this Act

    

(1) The Cabinet Secretary may, on the recommendation of the Institute of Certified Public Accountants of Kenya, by notice published in the Gazette, declare that persons of the following classes are to be recognised as being holders of an approved foreign qualification for the purposes of this Act—
(a) persons who are qualified to audit company financial statements of accounts under the law of a specified foreign country;
(b) persons who hold a specified professional qualification in accountancy obtained in a specified foreign country.
(2) A declaration under subsection (1) may impose special requirements that persons of a class specified in paragraph (b) of that subsection have to comply with.
(3) The Cabinet Secretary may make a declaration under subsection (1) in relation to persons referred to in paragraph (a) of that subsection only if satisfied—
(a) that their qualifications to audit company financial statements under the law of the foreign country concerned are sufficient to provide an assurance of professional competence equivalent to that required for statutory auditors; and
(b) that persons who are, or are eligible to be, appointed as a statutory auditors will be, or are likely to be, recognised as persons qualified to audit company financial statements under the law of that country.
(4) The Cabinet Secretary may make a declaration under subsection (1) in relation to persons referred to in paragraph (b) of that subsection only if satisfied—
(a) that the specified professional qualification in accountancy obtained in the foreign country concerned, together with the requirements (if any) to be imposed under subsection (2), provide an assurance of professional competence equivalent to that required for statutory auditors; and
(b) that the qualifications of holders of practising certificates issued under section 21 of the Accountants Act will be, or are likely to be, recognised by the competent authority established under a corresponding law of that country corresponding to the Registration Committee established under section 13 of that Act.
(5) The Cabinet Secretary may, by notice published in the Gazette, direct that persons holding an approved foreign qualification are to be treated as holding an appropriate qualification only if they hold such additional educational qualifications as may be specified in the direction for the purpose of ensuring that they have an adequate knowledge of the law and practice in Kenya relevant to auditing financial statements.
(6) The Cabinet Secretary may give different directions in relation to different approved foreign qualifications.
(7) After having taken into account the requirements specified in subsections(3) and (4), the Cabinet Secretary may, by notice published in the Gazette, withdraw a declaration made under subsection (1) in relation to—
(a) persons becoming qualified to audit financial statements under the law of the country after such date as is specified in the notice; or
(b) persons obtaining the specified professional qualification after such date as is so specified.
(8) After taking into account the requirements specified in subsections (3) and(4), the Cabinet Secretary may, by notice published in the Gazette, vary or revoke a requirement specified under subsection (2) from such date as is specified in the notice.
(9) The Cabinet Secretary may, by notice published in the Gazette, vary or revoke a direction under subsection (5) if of the opinion that it is no longer appropriate from such date as is specified in the notice.

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Disclaimer: This document is not to be taken as legal advise.

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