IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

Institute of Certified Public Accountants of Kenya

Introduction

The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

Part 1:	Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
Part 2:	Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

Setting auditing, accounting, ethics, public sector and education standards; and
Regulating the accountancy profession.

Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

Questions or comments may be sent to complianceassessment@ifac.org.

Section 3 -- Member Body General Information

1. Country:

KENYA

2. Name of member body:

Institute of Certified Public Accountants of Kenya

Or please specify name:

3. Individual responsible for preparation:

John Nyanjua Njenga

4. Date member body became a member of IFAC:

Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

01 / 1981

Questions 5 - 22 are for internal use only

Section 3G -- Affiliations

23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):

Eastern Central and Southern African Federation of Accountants(ECSAFA)

Section 4 -- Statutory Framework

Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

Section 4A -- The Companies Act or Commercial Code

The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

24. What is the full name of:

a). the Act or the Code:		The Companies Act, Chapter 486 of the Laws of Kenya
b). the Enacting body:		Kenya Parliament
c). date the Act or Code came into force:		01 /

25. How can IFAC obtain a copy of the Act or Code?

Hard copies available for sale at Government Printers Nairobi. They do not contain subsequent amendments. The Institute can source copies for IFAC upon request. Soft copies can be purchased from www.lawafrica.com, a private enterprise initiative. This contains up to date amendments.

26. Is the Act or Code available in English?

Yes

27. What are the types of entities covered by the Act or the Code?

Please check all that apply.

	Listed entities					Other (please specify):
	Private companies					Other (please specify):
	Governmental					Other (please specify):
	Not-for-profit					Other (please specify):

28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			Financial statements must be prepared in accordance with International Accounting Standards.
Private companies			Financial statements must be prepared in accordance with International Accounting Standards.
Governmental
Not-for-profit
Other (please describe)
Other (please describe)

29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			Financial statements must be audited in accordance with International Standards on Auditing.
Private companies			Financial statements must be audited in accordance with International Standards on Auditing.
Governmental
Not-for-profit
Other (please describe)
Other (please describe)

30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?

Yes

If YES, please indicate the term of appointment:

1 Year(s)

31. Who appoints the statutory auditors?

Please check all that apply.

	Shareholders					Management
	Board of directors					Other (please specify):
	Audit committee					Other (please specify):
	Government agency					Other (please specify):

32. Does the Act or Code require joint auditors for the statutory audit?

Yes

If yes, please describe the requirement:

33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?

Yes

If yes, please describe the requirement:
The existing auditors are deemed to be re-appointed unless the shareholders move a motion at the AGM for replacement.

Section 4B -- Securities Market Regulations

Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:

the major items of Legal authority for such requirements

Capital Markets Authority Act and The Capital Markets (Securities) (public Offers, Listing and Disclosures) Regulations, 2002
the Enacting body(ies)

Kenya Parliament and Capital Markets Authority respectively
the latest amendment date?

3rd May 2002

35. How can IFAC obtain a copy of the Legal authority?

Hard copies are available for sale at the Government Printers in Nairobi. The Institute can source copies for IFAC upon request.

36. Is the Legal authority available in English?

Yes

37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?

Yes

If YES, please describe the requirement:

Listed entities must prepare Interim Reports, have an Audit Committee and comply with rules on corporate governance which require their finance and accounting departments to be headed by a member of the Institute of Certified Public Accountants of Kenya (ICPAK).

38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?

Yes

If YES, please describe the requirement:

Prohibition against interlocking chairmanship, directorship, Chief Finance Officers, heads of Accounting Department must be members of ICPAK. and requirement for directors other than Managing Director to retire by rotation every 3 years.

39. Who appoints the statutory auditors of listed entities?

Please check all that apply.

	Shareholders			Management
	Board of directors			Other (please specify):
	Audit committee			Other (please specify):
	Government agency			Other (please specify):

40. Are auditors who perform audits of listed entities appointed for a specified period?

Yes

If YES, please indicate the term of appointment:

1 Year(s)

41. Are joint auditors required for audits of listed entities?

Yes

If YES, please describe the requirement:

42. Is rotation of the auditor or audit firm for audits of listed entities required?

Yes

If YES, please describe the requirement:

The existing auditors are deemed to be re-appointed unless the shareholders move a motion at the AGM for replacement.

Section 5 -- Auditing Standards

Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 5A -- Statutory Framework

43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:

Type of entity	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting audit and other assurance standards
Listed entity	Accountants Act	01/2002	International Standards on Auditing
Other (please describe) Other entities	Accountants Act	01/2002	International Standards on Auditing
Other (please describe)
Other (please describe)

Hard copies available for sale. The Institute can source copies for IFAC upon request.

Yes

Section 5B -- Standard-Setting (International Standards on Auditing)

44. For International Standards on Auditing, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

A statutory body in which all Certified Public Accountants in the Country are members.

Note: Proposed changes to the Accountants Act have not been finalized. It is under discussion by a Task Force that will recommend publication into a Bill for debate and adoption by Parliament. The draft may be obtained from ICPAK's website.

International Standards on Auditing.

ICPAK has established ISAs and IASs as the applicable standards as part of the objectives and in exercise of its powers under the Act.

45. How many voting members does the standard-setting body have?

The Professional Standards Committee currently comprises of fourteen (14) volunteer CPA�s; however, ICPAK adopts international standards without additions or deletions.

46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		The Fourteen volunteers are assisted by a permanent member of staff.

47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

The Professional Standards Committee currently comprises of fourteen (14) volunteer CPA�s drawn from various sectors of the economy.

48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

N/A

49. What is the term of appointment for members?

Year(s)

50. For how many years has the standard-setting body been in existence?

26 Year(s)

51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

N/A

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

N/A

52. To what entity is the standard-setting body accountable?

N/A

53. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

The Committee participates in standard setting by presenting discussion papers and subsequently commenting to Exposure Drafts.
accessibility of meetings (i.e., public or private)

N/A
approval process for final standards (i.e., majority required to approve final standards)

N/A
other relevant due process activities

Individual ISAs and IASs are adopted as published with no additions or subtractions.

With regards to question 54, the Committee meets bimonthly or more frequently in case of need.

54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

Day(s)

Section 6 -- Ethics

Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 6A -- Statutory Framework

55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.

Type of professional covered	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting ethics standards
Professional Accountants in Public Practice	The Accountants Act, Chapter 531 of the Laws of Kenya	01/2002	Institute of Certified Public Accountants of Kenya
Professional Accountants in Business	The Accountants Act, Chapter 531 of the Laws of Kenya	01/2002	Institute of Certified Public Accountants of Kenya
Professional Accountants in the Public Sector	The Accountants Act, Chapter 531 of the Laws of Kenya	01/2002	Institute of Certified Public Accountants of Kenya
Other (please describe)

Hard copies available for sale from the Government Printers. ICPAK can source copies for IFAC upon request.

Yes

Section 6B -- Standard-Setting (Institute of Certified Public Accountants of Kenya)

56. For Institute of Certified Public Accountants of Kenya, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Statutory body whose membership comprises all Certified accountants in the country.

ICPAK has adopted the IFAC code of Ethics for Professional Accountants.

57. How many voting members does the standard-setting body have?

Refer responses to questions 45 to 54 with regards to the Professional Standards Committee

58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		N/A

59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

N/A

60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

N/A

61. What is the term of appointment for members?

Year(s)

62. For how many years has the standard-setting body been in existence?

Year(s)

63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

64. To what entity is the standard-setting body accountable?

N/A

65. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

Refer responses to question 54 for this question.
accessibility of meetings (i.e., public or private)
approval process for final standards (i.e., majority required to approve final standards)
other relevant due process activities

66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

Day(s)

Section 7 -- Education

Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

Section 7A -- Education Requirements

67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:

Formal education starts in Primary School in class 1 and proceeds up to class 8 over an 8 year period. A national examination is administered by the Government and candidates proceed to Secondary Schools. This is for a period of 4 years and another national examination is administered. A candidate who attains a mean grade of C+ at this stage and a grade of C+ in Mathematics and English qualifies to start the Certified Public Accountant course. It comprises 18 subjects split into 6 sections. Two sections can be taken at a time and a progression rule applies.

68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?

Yes

The Registration of Accountants Board. Before certification as an Accountant, one must pass all the 18 subjects of the Certified Public Accountants examination.

69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.

	Academic requirements Ordinary Level qualification. Mean Grade of C+
	Professional examinations 18 subjects of the Certified Public Accountants course.
	Practical experience Only necessary when a member wishes to practice public accountancy. A mandatory 3 years audit experience.
	Final qualifying examination The Final Qualifying Examination exists within the present KASNEB set up. It entails a set of Six Papers in the last part of the examination series. It forms a basis for issuance of a Final Accountancy Examination Certificate which is necessary for registration.
	Other (please describe)

70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.

	A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
	A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
	Member body(ies) establishes the education requirements for the accounting profession.
	Other (please describe)

71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.

A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.
KASNEB sets and administers the examination. The Board comprises Fourteen members appointed, Five by Government Ministries, one by the Director of Personnel Management, one by the Kenya Institute of Administration, one by a local university, one by the Federation of employers, one by the Attorney General, two by ICPAK and two by the Institute of Public Secretaries.
How many voting members does the relevant body(ies) have
Fourteen
Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?

Voluntary

Employed

Both - Please describe:
For how many years has the body been in existence?

26 Year(s)

72. How would you describe the authority that the education requirements have?

	Requirements are legally-based
	Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
	Requirements are set in member body(ies) policy document(s).
	Other (please describe)

72 a. How can IFAC obtain copies of these documents?

Contact ICPAK.

72 b. Are these documents available in English?

Yes

73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?

Same

Different

If different, please briefly describe the main differences:

74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.

	The education program and final examination are delivered by the member body.
	The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
	The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
	Other (please explain)

75. Once qualified as a member of your professional body, can members offer their services directly to the public?

Yes

Section 7B -- Licensing

76. Are there licensing requirements for auditors in your country?

Yes (continue with Question 77)

No (proceed to Section 8)

77. Who sets the requirements to obtain a license?

The Registration of Accountants Board.

78. What are the requirements to obtain a license (please select all relevant requirements.)?

	Academic study specific for obtaining a license
	Practical experience
	Licensing examination
	Final qualifying examination
	Other (please describe) Refer response to question 69 for additional information.

79. Are there ongoing requirements to retain a license?

Yes

	Continuing professional development
	Re-examination
	Other (please specify): Maintain good ethical standing.

80. What entity grants the license?

The Registration of Accountants Board

81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).

N/A

Section 8 -- Public Sector Accounting Standards

Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

Section 8A -- Statutory Framework

82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.

Type of entity	Name of legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting public sector accounting standards
Whole of government	Public Audit Act	12/2003	Kenya National Audit Office
Ministry/department	Public Audit Act	12/2003	Kenya National Audit Office
Statutory authority/agency	Public Audit Act	12/2003	Kenya National Audit Office
Profit entity owned by government	Public Audit Act	12/2003	Kenya National Audit Office
State governments	Public Audit Act	12/2003	Kenya National Audit Office
Local governments	Public Audit Act	12/2003	Kenya National Audit Office
Other (please describe)
Other (please describe)

Hard Copy available for sale at the Government Printers in Nairobi. ICPAK can secure copies for IFAC upon request.

Yes

Section 8B -- Standard-Setting (Kenya National Audit Office)

83. For Kenya National Audit Office, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Government Department headed by a Council comprising of the Controller and Auditor General, Chairman the Public Accounts Committee of Parliament, Chairman Public Service Commission, Chairman the Public Investments Committee of Parliament, The Attorney General or his nominee and a practising member of ICPAK.

Generally accepted accounting practices.

The Standards are not currently based on IPSASs and are not defined by a body of standards as the Kenya National Audit Commission (KNAC) is in the process of formulating and defining them.

84. How many voting members does the standard-setting body have?

Six

85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Geographical representation for the leaders of the Parliamentary Committees and best person for the job for the others.

87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Government

88. What is the term of appointment for members?

5 Year(s)

89. For how many years has the standard-setting body been in existence?

1 Year(s)

90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

1,200,000

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

78.246

91. To what entity is the standard-setting body accountable?

Parliament.

92. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

N/a
accessibility of meetings (i.e., public or private)

N/a
approval process for final standards (i.e., majority required to approve final standards)

None
other relevant due process activities

93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

20 Day(s)

Section 9 -- Private Sector Accounting Standards

Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

Section 9A -- Statutory Framework

94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.

Type of entity	Name of legal authority or applicable rules	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting private sector accounting standards
Listed entity	Accountants Act	01/2002	Institute of Certified Public Accountants of Kenya
Other (please describe) Other entities	Accountants Act	01/2002	Institute of Certified Public Accountants of Kenya
Other (please describe)
Other (please describe)
Other (please describe)

N/A

Yes

Section 9B -- Standard-Setting (Institute of Certified Public Accountants of Kenya)

95. For Institute of Certified Public Accountants of Kenya, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

A statutory body in which all Certified Public Accountants in the Country are members.

International Accounting Standards.
ICPAK has adopted International Accounting Standards.

Refer Section 5 for remaining answers relating to this section.

96. How many voting members does the standard-setting body have?

Refer Section 5 for remaining answers relating to this section.

97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

100. What is the term of appointment for members?

Year(s)

101. For how many years has the standard-setting body been in existence?

Year(s)

102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

103. To what entity is the standard-setting body accountable?

104. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

Refer Section 5 for remaining answers relating to this section.
accessibility of meetings (i.e., public or private)
approval process for final standards (i.e., majority required to approve final standards)
other relevant due process activities

105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

Day(s)

Section 10 -- Monitoring (Quality Assurance) and Enforcement

Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

Section 10A -- Securities Market Regulatory Authority

106. Name the authority that regulates the securities market:

Capital Markets Authority.

107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:

Ensuring the rules on disclosure and continuing obligations are complied with. The Capital Markets (Securities) (Public Offers, Listing and Disclosures) regulations, 2002 are established pursuant to powers vested in the organisation by the Capital Markets Authority Act.

108. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

No role as this is exercised by the Institute of Certified Public Accountants of Kenya, the member body.
accounting and auditing standard-setting

Except for specific regulations on minimum contents of accounts and periods of accounting for listed companies, the regulatory authority has no role as this is exercised by the Institute of Certified Public Accountants of Kenya, the member body.
review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

Selects, on a discretionary basis based on risk factors, the published accounts of listed entities to ensure compliance.

Section 10B -- Stock Exchange

109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:

Profit	Not for profit	Stock Exchange
		Nairobi Stock Exchange

Section 10B -- Stock Exchange
Nairobi Stock Exchange Details

110. For Nairobi Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

The Capital Markets Authority performs the task as described in Section 10 A.
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

Suspension of the entity from the stock exchange.
How enforcement actions are administered.

Fines may be imposed as well as suspensions.

Section 10C -- Regulatory Oversight of the Accounting Profession

111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?

Yes

If NO, proceed to the next section.

If YES, please describe :

What are the name and duties of the oversight body?
The number of members on the oversight body
Its powers
How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations
The sanctions the oversight body may impose in the event of non-compliance
How the oversight body is accountable to any public institution or body

Section 10D -- Banks Regulatory Authority

112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:

Central Bank of Kenya. The Banking Act and the Central Bank Act set out minimum disclosure requirements whose compliance is verified by the a Department of the Central Bank.

113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:

No specific requirements on accounting and auditing standards. Emphasis is put on statutory requirements and the enforcement of accounting and auditing standards is left to ICPAK, the member body. Banks are however required to publish in the local dailies the half and full year results.

114. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

The authority in consultation with the Institute of Certified Public Accountants, the member body, compiles a list of authorised auditors who must be in good standing with the member body.
accounting and auditing standard-setting

This is left to the mechanisms of the member body which has adopted International Accounting Standards and International Standards on Auditing.
review of financial statements prepared by listed entities

An inspection department routinely verifies compliance with statutory requirements.
enforcement of accounting, reporting and auditing requirements

An inspection department routinely verifies compliance with statutory requirements from periodical reports and published accounts filed with the organisation.

Section 10E -- Non-Banking Financial Institutions Regulatory Authority

115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.

Central Bank of Kenya

116. What is the source of Legal authority of the regulatory authority(ies)?

The Building Societies Act, Chapter 489 of the Laws of Kenya.

117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:

regulation of the audit profession

Compiles a list of authorised auditors in consultation with the member body.
accounting and auditing standard-setting

The Statute establishes minimum disclosure and classification rules which are to be adhered to in addition to International Accounting Standards and International Standards on Auditing.
review of financial statements prepared by listed entities

The organisation conducts routine checks of published accounts.
enforcement of accounting, reporting and auditing requirements

Requires periodical filing of audited accounts which are routinely inspected.

Section 10F -- Insurance Companies Regulatory Authority

118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.

Commissioner of Insurance.

119. What is the source of Legal authority of the regulatory authority(ies)?

The Insurance Act, Chapter 487 of the Laws of Kenya.

120. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

maintains an annual list of authorised auditors who must be in good standing with the member body.
accounting and auditing standard-setting

Sets out a mandatory minimum disclosure as well as classification and valuation criteria which is applied along with the requirements of International Accounting Standards and International Standards on Auditing.
review of financial statements prepared by listed listed entities

Routine inspection of periodical statutory reports and published accounts for compliance with the mandatory rules.
enforcement of accounting, reporting and auditing requirements

Emphasis placed on compliance with mandatory rules on classification, valuation and treatment of statutory items. Other aspects of quality left to the member body.

Section 10G -- Other Regulatory Authority

121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.

The Ministry of Cooperative Development.

122. What is the source of Legal authority of each regulatory authority?

Cooperative Societies Act, 1997

123. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

In consultation with the member body, compiles an annual list of auditors authorised to audit cooperative societies.
accounting and auditing standard-setting

Sets out the minimum disclosure requirements in the preparation of accounts of cooperative societies.
review of financial statements prepared by listed listed entities

Periodic inspection of the affairs of a cooperative society by representatives of the Ministry.
enforcement of accounting, reporting and auditing requirements

Checks for compliance at the point where annual reports are filed with the Registrar of Cooperatives.

Section 10H -- Quality Assurance

124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?

Yes

If NO, proceed to next Section.

If YES, briefly describe the monitoring and enforcement mechanism.

The Institute of Certified Public Accountants is in the process of implementing a quality review programme and the pilot reviews are currently underway. The programme becomes compulsory for all practising members 01/01/2005.

125. Under what authority does the organization conduct the program of quality assurance review?

Accountants Act, Chapter 531 of the Laws of Kenya and the By-laws.

126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?

ICPAK Staff and independently contracted reviewers.

The reviews are on both audit firms and the audits. The firm�s structures and controls are reviewed as well as the product of the firm on a sample basis.

With the adoption of ISQC 1 with effect from 1st January 2005 every firm will be subject to a review at least once in five years.

Section 10 I -- Investigation and Discipline

127. Is there a process for investigating and disciplining the accounting profession in your country?

Yes

If NO, proceed to the Certification of Chief Executive

128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?

	Government or other agencies are solely responsible for this function.
	Government or other agencies have this responsibility, but the member body or bodies participate in the process.
	Government formally delegates this function to the member body or bodies, to exercise on its behalf.
	Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
	Other (please explain)

129. Please indicate the name of the body or bodies responsible for investigation and discipline.

Secretariat of the Institute of certified Public Accountants investigates, the Disciplinary Committee decides upon hearing the member under investigation and the Registration of Accountants Board punishes where more than a reprimand is recommended.

Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

130. How many voting members does the body have?

131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		Voting members engaged on a voluntary basis while support staff is employed

132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Academic and best persons for the job.

133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

The Council of the member body.

134. What is the term of appointment for members?

3 Year(s)

135. For how many years has the body been in existence?

26 Year(s)

136. Please indicate the budget in US$ of the body for the last fiscal year.

Note: Please enter a whole number using commas (e.g., 4,000,000)

7,300

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

78.246 (specify currency)

137. To what entity is the body accountable?

The Council of the member body.

138. Approximately how many days per year does the body meet in full session (including teleconferences)?

12 Day(s)

Disclaimer

The information contained within the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaires, Part 2 SMO Self-Assessment Questionnaires, and Part 3 SMO Action Plans are based entirely on information provided to IFAC by the IFAC member or associate to which the information relates. Further, the information has been collected by IFAC for the exclusive use and benefit of IFAC and IFAC's members and associates, but is being made available through this website to the general public in the interest of transparency of the IFAC Member Body Compliance Program. While certain efforts are made to validate the information, IFAC undertakes no obligation to confirm or investigate the completeness or accuracy of any of the content of the questionnaire or action plan, now or at any time in the future. Persons accessing the questionnaire or action plan assume full responsibility for the use of the information set forth herein. IFAC does not make any express or implied warranties or representations whatsoever as to any information provided through the questionnaire or action plan, including, without limitation, that the information contained herein will be error-free. IFAC shall not be liable for any damages, including, without limitation, direct, indirect, incidental, special, punitive or consequential damages, that result in any way from your use or reliance on information provided in the questionnaire or action plan. If you need to rely on the information set forth herein for any purpose, you are urged to confirm the information set forth herein with other sources.

* Indicates organizations that qualify to submit SMO Action Plans biennially

	This Site
	IFACnet

Compliance Responses and Action Plans

Institute of Certified Public Accountants of Kenya

Questions 5 - 22 are for internal use only

Disclaimer