ICPAK AUDIT MANUAL

1. INTRODUCTION

1.1. Scope of the Manual

The ICPAK Audit Manual has been designed to guide members in public practice on the conduct of
audits in accordance with the International Standards on Auditing and incorporates International
Standards on Auditing and International Auditing Practice Statements in force at 31 st December
2006. The Manual focuses on audits of small and medium sized incorporated companies and is
largely aimed at owner-managed and director-controlled companies, but also contains sufficient
guidance towards the audit of larger companies. The principles set out in the Manual will be of
general application to all audits but the audit approach will need to be tailored when auditing
‘special’ entities, such as companies engaged in the financial services sector, professional firms
and non-government organisations.

1.2. Structure of the Manual

The Manual is presented in six parts:

 Part A: Audit Objectives, Respective Responsibilities and Audit File Contents

 Part B: Quality Control and Client Acceptance
 Part C: Key Audit Areas
 Part D: Other Audit Areas
 Part E: Audit File Contents

1.3. Matters not dealt with in the Manual

The Manual does not attempt to contain or repeat information readily available in International
Standards on Auditing, International Auditing Practice Statements and the Code of Ethics for
Professional Accountants and, where necessary, reference should be made to these. In particular,
the Manual does not cover:

 Compliance with all the requirements of International Standard on Quality Control 1 which
establishes standards and provides guidance regarding a firm’s responsibilities for its system of
quality control for audits and reviews of historical financial information, and for other assurance
and related service engagements.
 Non-audit assignments including the provision of accounting services.

1.4. Glossary of Terms

COE: Code of Ethics for Professional Accountants

IAPS: International Auditing Practice Statements
ICPAK: Institute of Certified Public Accountants of Kenya
IFRS: International Financial Reporting Standards
ISA: International Standards on Auditing
ISQC 1: International Standard on Quality Control 1
Entity: Refers to the audit client.

1. Introduction 1 of 1
Version 1 - 9th October 2006