The Companies Act No. 17 of 2015Section 725 of The Companies Act No. 17 of 2015: 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 (1), a company shall—(a) include—
(i) a copy of any terms that are in writing; and
(ii) a written memorandum setting out any terms that are not in writing;
(b) ensure that the disclosure is made at such times, in such places and by such means as are specified in the regulations; and (c) specify the place and means of disclosure-
(i) in a note to its annual financial statement or, if it prepares a group financial statement, in a note to that statement;
(ii) in the directors' report; or
(iii) in the auditor's report on its annual financial statement.
(3) In making regulations for the purpose of this section, the Cabinet Secretary shall ensure that the regulations provide for the disclosure of any variation of the terms on which a company's auditor is appointed, remunerated or required to carry out the responsibilities of auditor.
Check the current authoritative text and amendment history before relying on this provision.
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…
(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 priva…
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 w…
(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; and (b) state…
(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 accountin…
(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 followi…
(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…
(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 stateme…
(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…
(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, th…
(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 si…
(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 copy…
(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 aud…
(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 (b)…
(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 immediatel…
(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 lod…
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 otherwi…
(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 auditors.…
(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 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 statementr…
(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 wi…
(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 of…
(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 audit…
(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 sta…
(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 sec…
(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 the…
(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 noti…
(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 o…
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.
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.
(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 t…
(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 be…
(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 o…
(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…
A company is a quoted company for the purposes of this Division only if it is a quoted company for the purpose of section 627 in relation to the financial year for which a financial statement of the c…
(1) This section applies to any provision— (a) for exempting an auditor of a company, to any extent, from liability that would otherwise be incurred by the auditor in connection with any negligence, d…
Section 761 does not prevent a company from indemnifying an auditor against liability incurred in defending proceedings, whether civil or criminal, in which judgement is given in the auditor’s favour…
(1) This section applies to the following persons— (a) an officer of a company; (b) a person employed by a company as an auditor. (whether or not the person is an officer of the company). (2) If, in p…
(1) For the purposes of this Division, an agreement is a liability limitationagreement if it purports to limit the extent of a liability owed to a company by its auditor in respect of any negligence,…
(1) A liability limitation agreement is not effective if it— (a) purports to apply in respect of acts or omissions occurring in the course of the audit of financial statements for more than one financ…
(1) A liability limitation agreement is authorised by the members of the company only if it has been authorised under this section and that authorisation has not been withdrawn. (2) A private company…
(1) A liability limitation agreement is not effective to limit the auditor’s liability toless than such amount as is fair and reasonable having regard to— (a) the auditor's responsibilities under this…
(1) A company that has entered into a limited liability agreement shall disclosedetails of the agreement— (a) in the case of a company that prepares an individual financial statement—in notes to the s…
(1) The directors of a quoted company shall ensure that the company has anaudit committee appointed by the shareholders of a size and capability appropriate for the business conducted by the company.…
(1) The audit committee of a quoted company shall— (a) set out the corporate governance principles that are appropriate for the nature and scope of the company's business; (b) establish policies and s…
The purpose of this Part is to ensure— (a) persons who are properly supervised and appropriately qualified are appointed as statutory auditors; and (b) that audits by persons so appointed are carried…
A natural person or firm is eligible for appointment as an auditor only if the person, or each partners of the firm— (a) is the holder of a practicing certificate issued under section 21 of the Accoun…
(1) A person shall not act as a statutory auditor of a company, or of a body of a kind prescribed by the regulations for the purposes of this section, unless the person is eligible for appointment as…
(1) A person may not act as statutory auditor of an audited company if the person is— (a) an officer or employee of the audited company; (b) a partner or employee of the audited company, or a partners…
(1) If, at any time during the statutory auditor’s term of office, the auditor becomes prohibited from acting as such by section 774(1), the auditor shall immediately— (a) resign from office; and (b)…
