A Survey of the Need and Scope for Independent Audit of Management by Certified Public Accountants in Kenya

Abstract

This research has been set up to examine issues related to the audit of management in Kenya. It has set out to examine whether a need exists for this type of audit, the persons who should carry it out, the scope the audit should take, its duration and the concept of control over it. Although it seems a very new issue in the Kenyan scene, it nevertheless has existed and has been examined in other countries such as Britain and America. The research used predesigned questionnaires. These questionnaires were designed to tap information regarding the management audit on issues refered to above. It has been concluded from the research that notwithstanding the non-exposure of such an audit, the two groups interviewed namely the Audit Firm Partners and the Financial Directors feel that the need realy exists to audit management. On all the other issues basic reservations exists as there were no very clear-cut responses on scope, duration and control. The best explanation that can be given is that a departure towards the area of management auditing will probably require first and foremost a very clear definition of the basic points to be examined and the means by which such examination is to be performed. The subjective nature of most of the audit may therefore be required to be defined in terms of quantatitive similarities as much as possible.