QUALIFICATION OF AUDITORS ACCORDING TO THE COMPANIES ACT
The companies Act Cap 486 lays down the condition for a person who wishes to practice
as an auditor. Section 161 (1) states that for one to practice as an auditor in Kenya, the
person has to be a holder of a practising certificate as awarded by the Registration of
Accountants Board.
To get such a certificate one has to be a member of the Institute of Certified Public
Accountants of Kenya (I.C.P.A.K) and must have passed the final stage of the
Accountants examination.
Some of the aspects that are required of a firm or a person to practise as an auditor in
Kenya are: The firm or person has to be independent.
 The person or firm is a holder of a practising certificate.
 The person is a qualified accountant. For a firm, the partners have to be qualified
accountants
Section 161 (2) of the Companies Act Cap 486 does not give the prepositions on who
qualifies to be an auditor, instead it puts forward who does not qualify to be an auditor.
The following parties cannot be auditors;
1. An officer or servant of the organisation. This addresses the fact that an employee
of an organisation cannot perform his or her own audit.
2. A person who is a partner or business associate of an employee of the company
being audited. This also insists on the professional standards of independence of
the auditor.
3. A body corporate. This is because of the functions that auditors are supposed to
do; one of which is to ultimately express an audit opinion. A body corporate
cannot express an opinion but this is done by the partner.