Question

QUESTION FOUR

(a)      Describe the main institutions under which the accounting profession is organized in Kenya.                                 [6 marks]

(b)      “Accounting standards have improved the usefulness of accounting information”. Do you agree? Explain.                          [14 marks]

Answer 1

(a) The professional organization that controls the activities of all Certified Public Accounts in Kenya is ICPAK(The institute of Certified Public Accountants of Kenya) It was established in 1978 by the laws of Kenya under CAP 531. ICPAK always upholds the interest of the public,members and therby increases it's contribution towards national economic growth& development. It's vision is "A world class professional accountancy institute".This institute always promote standards of professional competence, international recognition,research into the subjects of accountancy.

(b) Yes I agree, Account Standards have improved the usefulness of accounting information to a great extent. Accounting Standards says about the various events and transactions that are to be recognized,measured,presented and finally disclosed in financial statements. A proper order is always maintained thus makes the information very reliable. It has the following benefits

• Determining managerial accountability, Comparability, assist auditors, Prevents frauds& accounting manipulations, attains uniformity in Accounting, improves reliability of financial statements etc......