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Frequently Asked Questions

Accounting and Internal Audit Standards in the Public Sector.

 generally accepted internal auditing standards

generally accepted internal auditing standards

The role of PSASB is to set generally accepted accounting and internal auditing standards for Public Sector entities in Kenya.

In the year 2014, PSASB approved for adoption, the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the International Public Sector Accounting Standards (IPSAS) issued by the International Public Sector Accounting Standards Board (IPSASB). These standards are applied as follows:

  • The National and County governments and their respective entities shall apply the IPSAS cash based standard
  • The Semi-Autonomous National and County Government Agencies shall apply IPSAS Accrual based standards.
  • The state and County Corporations carrying out commercial activities shall apply IFRS while regulatory and non commercial State and County Corporations shall apply IPSAS Accrual.

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The Board approved for adoption and application of the International Professional Practice Framework (IPPF) for internal Auditing Standards by the Institute of Internal Auditors by all state organs and public sector entities..

Financial reporting templates for public sector entities can be accessed from the PSASB’s website as well as the National Treasury’s website. These templates are updated on an annual basis. Public sector entities should strive to download the templates before preparation of their annual financial statements.

ICPAK is a member institute established under the Accountants Act with the role of promoting standards of competence and practice amongst members of the institute. PSASB on the other hand is a standard setting body for the public sector and therefore the roles of these two institutions are complimentary.