ADVOKS GLOBAL · KENYA
Companies Act
774. Statutory auditor to be independent
Edition: 2024-12-27 · In force
774. Statutory auditor to be independent
(1)A person may not act as statutory auditor of an audited company if the person is—(a)an officer or employee of the audited company;(b)a partner or employee of the audited company, or a partnership of which such a person is a partner;(c)an officer or employee of an associated undertaking of the audited company; or(2)Subsection (1) applies if there exists between—(a)the person or the person's associate; and(b)the audited company or an associated undertaking of the audited company, a connection of a description prescribed by the regulations for the purposes of this section.(3)An auditor of an audited company is not to be regarded as an officer or employee of the company for the purposes of subsection (1).(4)In this section, "associated undertaking", in relation to an audited company, means—(a)a parent undertaking or subsidiary undertaking of the audited company; or(b)a subsidiary undertaking of a parent undertaking of the audited company.(5)A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding one million shillings.(6)If, after being convicted of an offence under subsection (5), a person continues to act in contravention of subsection (1), the person commits a further offence on each day on which the offence continues after the date of conviction and on conviction is liable to fine not exceeding one hundred thousand shillings for each such offence.