(Xinhua) -- Kenya plans to adopt international
financial auditing standards in order to boost the country’s
attractiveness to foreign investors, accountancy regulator said
Institute of Certified Public
Accountants of Kenya (ICPAK) CEO Patrick Ngumi told a finance
forum in Nairobi that all publicly listed companies will be
required to implement the standards after January 2017.
However, those companies whose
financial year ends before the end of 2016 are encouraged to
implement the standards in order to improve investor confidence
in the financial markets, Ngumi said.
Investors tend to put their funds in
countries that have open and transparent financial reporting
standards that are legally enforceable,” he said.
Once the standards are in place, the
auditors will be required to disclose key auditing matters that
affect a company’s financial sustainability.
The CEO said currently auditors of
public companies have no avenue to report any financial
discrepancies they encountered in their work.
“This is because auditors sign a
confidentiality agreement with clients before they commence
any audit work,” he said.
ICPAK said the new standards will
compel accountants and auditors to be more proactive in reducing
financial reporting fraud.
“It will be an offense if auditors
conceal anything illegal or information that turns out to be
detrimental to the investing public,” Ngumi said.