External Auditors

Qualification of the Audit Firm:

• The auditor must be completely impartial and independent from all aspects of management or financial interests of the organization;
  
• The auditor shall not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as advisers or mentors for, or have any financial or business relationships with the organization; and
  
• The auditor shall be registered with the (Institute of Certified Public Accountants of Kenya (ICPAK) and must demonstrate that they possess appropriate professional qualifications and suitable experience in accounting and auditing the accounts of entities comparable in size and complexity to the entity being audited;
  
• Curriculum Vitae (CVs) must be provided to Y.A.K by the Partner of the firm of auditors who shall be responsible for signing the opinion, together with the CVs of key personnel proposed as part of the audit team. The CVs shall include details of audits carried out by the concerned staff, including ongoing assignments indicating capability and capacity to undertake the audit.
  

• The audit will be carried out in accordance with the standards specified in Section 4 above and will include such tests and verification procedures as the auditors consider necessary under the circumstances. In conducting the audit, special attention should be paid to the
  
• following:
  
• Carry out tests of transactions as are necessary, in order to obtain an understanding of the accounting system, to assess its adequacy as a basis for the preparation of the financial statements and to establish whether adequate records have been maintained as required by the Y.A.K. Financial Manual and applicable rules of the donors;
  
• Conduct an in-depth and exhaustive review of the internal control systems to have sufficient knowledge of the procedures underpinning the systems, as contained in the Y.A.K. Financial Manual and the applicable rules of the concerned donors;
  
• Confirm that although responsibility for preventing irregularity and fraud remains with the Secretariat, the audit has been planned so as to have a reasonable expectation of detecting material misstatements in the financial statements;
  
• Confirm that funds have been used in accordance with the applicable rules of the concerned donors and the Board of Directors with due attention to economy and efficiency, and that they have only been used for the purposes for which they were intended for and in accordance with the conditions under which the funding was provided;
  
• Confirm that Goods and Services financed have been procured in accordance with sound procurement procedures spelled out in the Y.A.K. Procurement Procedures; Finance Manual Regulations and applicable rules of the donors;
  
• Confirm that all necessary supporting documents, records and accounts have been kept in respect of all activities. Clear linkages should exist between the books of accounts and the financial statements presented;
  
• Confirm that the Financial Statements have been prepared in accordance with acceptable accounting practice and give a true and fair view of the financial position of the Secretariat as at the end of the financial year.
  
• Confirm that where special accounts have been used, they have been maintained in accordance with the provisions of the relevant Memorandum of Understanding and Agreements.
  
• Confirm that the asset register is properly maintained and up to date with all the
  
• organizational assets.
  
• The above-defined scope does not in any way restrict the audit procedures or the techniques that the auditor may wish to use in forming an opinion on the Financial Statements being audited.