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 31st 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. 1 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 Version 1 - 9th October 2006 1 of 1