27th October, 2016
Audit systems are not entirely to blame in event that a company crumbles financially as has been the case at Kenya Airways and Mumias Sugar Company. That is the tough stance that stakeholders in the upcoming financial reporting or fire awards are taking indicating that directors and managers need to take greater responsibility for their action. This is in line with the fairly new company’s act which was enacted last year and which calls for restructuring the roles of company directors in both private and public sectors. It also makes it mandatory for audit reports to reveal all forms of discussions that have taken place between directors and auditors, in order to enhance transparency and corporate governance.