28th-Jan-2026 • Reddington Onyango • SME Audit Preparation
For many small and medium enterprises (SMEs) in Kenya, the thought of an audit can be daunting. However, with proper preparation, audits don't have to be stressful ordeals but rather opportunities for growth and improvement. This guide provides actionable steps to help SME owners navigate the audit process effectively.
The first step in preparing for an audit is understanding why it's being conducted. Is it a routine compliance check, or is there suspicion of fraud? Knowing this will help you tailor your preparation accordingly.
Having accurate and up-to-date financial records is crucial during an audit. Ensure all income, expenses, assets, liabilities, and bank statements are accounted for and easily accessible. Utilizing a business management platform like Lipabiz can simplify this process.
Auditors may request supporting documents such as contracts, invoices, receipts, and proof of payments. Having these organized and easily accessible will save time during the audit process.
Ensure you have all necessary tax registration numbers and understand your tax obligations. Failure to comply can lead to penalties and delays in the audit process.
Auditors may want to interview key employees during the audit. Provide auditors with a list of these individuals, along with their roles and responsibilities within the organization.
Anticipating potential questions from auditors can help you prepare more effectively. Consider any areas where your business practices may be unclear or potentially suspicious, such as irregular transactions or significant financial fluctuations.
If you're unsure about any aspect of the audit process, consider consulting with a professional accountant or auditor. They can provide guidance and help ensure your business is fully prepared for the audit.
