Disclose financial positions to public – Accountants to Auditors
The Institute of Certified Public Accountants of Kenya (ICPAK) has called on the CEO, CFO’s and auditors of the public licensed market intermediaries to adapt the new International financial reporting standards which was issued by the International Auditing and Assurances Standards Board.
ICPAK Chief Executive Officer, Patrick Ngumi, says this regulation in “the key audit matters” requires the auditor to disclose information to the relevant authority.
In the past, the auditors were sworn to secrecy making accessibility and interpretation of public information quite difficult to the users of financial statements
Ngumi says there is a new standard ethics regulation for professional accountants and auditors requiring them to report any non-compliance in law and regulations which they find in the process of their work.
“It is now mandatory for all public listed organizations and auditors to adopt that international accounting standards number 701 and also encourage other entities to do voluntary adoption since this will improve the attractiveness to potential investors,” said Ngumi
This comes after the President Uhuru Kenyatta on Wednesday signed Access to Information Bill into law.
The Act gives the Commission on Administrative Justice oversight and enforcement powers and allows the public to seek information from the government and obliges public servants to provide it or risk jail.
The standard on auditing becomes effective on companies with year end of 15th of December 2016
The Capital Markets Authority (CMA) has echoed these sentiments saying it is supporting the implantation of the new standard and all regulated entities within the Capital Markets Authority are required to be in compliance.
CMA CEO, Paul Muthaura, says the authority will be issuing guidance note on the implementation of the new standards. He says this will improve the quality and transparency of financial reports.