KayLyn Intl

One Question Every Great Auditor Asks

Many auditors review documents but great auditors ask questions.

One of the most powerful questions in audit is "How do you know?"

Management says the control is working.

How do you know?

A department says all assets are accounted for.

How do you know?

A manager says the process is effective.

How do you know?

This simple question shifts the discussion from assumptions to evidence.

And evidence is the foundation of every audit conclusion.

The next time you're in a meeting, conducting an interview, or reviewing a process, remember:

Don't stop at the explanation.

Follow up with "How do you know?"

Because good auditors listen. Great auditors verify.

What is the most powerful audit question you have ever asked or been asked during an audit?

👇 Share your experience below.

Imagine you run a cereals shop in your local estate. You sell rice, maize, beans, and cooking oil. Customers come, pay in cash or through mobile money, and your bank account grows month after month. You are busy stacking sacks and counting coins, but you never file a single tax return. When the Kenya Revenue Authority sends you a gentle reminder, you tear it up. When they send a demand notice, you throw it in the bin. You tell yourself, “I am too small for the taxman to notice. Let me just hide behind my sacks of rice.” That is exactly what Mohamed Ali Isaack, a real rice trader in Nairobi, told himself for five long years.

Mohamed Ali Isaack ran his cereals business from 2013 to 2017. He never filed income tax returns. He ignored every KRA message, every letter, every notice. Behind his tent of silence, he felt safe. But the taxman’s computers do not sleep. They traced over 25 million shillings flowing through Mohamed’s bank accounts. The Commissioner raised a default assessment of KShs 11,327,159 in unpaid income tax. Suddenly, the man who thought he was invisible was slapped with a bill that could buy a house. He panicked. He filed an objection, complaining that the KRA had relied too much on bank deposits and had ignored his business expenses. He even asked for a friendly meeting.

But here is where the cereals shop owner’s dream crumbles. When the KRA wrote to Mohamed on 12th October 2020 asking for a simple breakdown of his costs—just some receipts, a ledger, anything—he went silent again. The same man who had shouted “injustice” now had nothing to show. No books of account. No signed financial statements. No invoices for the rice he claimed to have bought. Behind his tent, his folder was empty. The Commissioner, left with no evidence, confirmed the entire assessment. Mohamed had to appeal to the Tax Appeals Tribunal.

At the Tribunal, the judges looked at Mohamed’s case and shook their heads. They quoted Section 56(1) of the Tax Procedures Act, which says the burden is on the taxpayer to prove a tax decision is wrong. They cited the Monaco Engineering case: a taxpayer must point to specific errors with documents, not just shout. Mohamed had brought nothing. He had not even replied to the KRA’s letter. On 22nd October 2021, the Tribunal dismissed his appeal and upheld every shilling of the KShs 11.3 million assessment.

So, you who run a cereals shop, listen carefully. . Ignoring their letters does not make tax go away—it only makes the final bill grow bigger. Keep your books. File your returns. Reply to every message. Because behind that tent of silence, there is no safety.. Do not be the next rice trader they write a story about.

In every organization, there are employees and then there are indispensable employees.
These are the people the company trusts, relies on, and can’t imagine losing.
If you want to stand out in any accounting department, here’s the roadmap 👇

1️⃣ Master the Fundamentals
Be solid in double entry, reconciliations, ledger review, financial statements, and compliance.
When your basics are strong, your work becomes error free and reliable.

2️⃣ Be the Accuracy Champion
Accounting is all about precision.
Double check your work. Spot errors early. Deliver clean numbers.
Trust is built on accuracy.

3️⃣ Understand the Business, Not Just the Books
Know how the company makes money, where it spends money, and what drives costs.
This makes your reports more meaningful and your advice more valuable.

4️⃣ Be Tech Savvy
Excel, accounting software, automation tools.
The more tools you master, the faster and more efficient you become.
Smart work beats hard work.

5️⃣ Communicate Clearly
Explain numbers simply.
Break down financial results in a way managers can understand and use for decision making.
Clarity makes you powerful.

6️⃣ Stay Organized and Deadline Focused
Financial reporting is time sensitive.
Deliver early, not late. Keep clean files. Stay audit ready.
Consistency earns respect.

7️⃣ Show Professionalism and Integrity
Confidentiality, ethics, reliability — these matter more than technical skills.
A trustworthy accountant is always valuable.

8️⃣ Take Initiative
Fix problems without being told. Recommend improvements.
Don’t just follow instructions — add value.

9️⃣ Become the Problem Solver
When others panic, be the calm one who finds solutions.
People depend on those who can troubleshoot errors and help the team move forward.

🔟 Keep Learning
Tax laws change. Standards change. Software evolves.
Stay updated and you will always stay relevant.

💡 Key Takeaway:
Being indispensable doesn’t happen by luck — it’s built through skills, attitude, reliability, and value creation.
When you consistently make life easier for your team and your boss, you become the person they can’t afford to lose.

Mastering the Three Financial Statements
Whether you’re a finance leader, entrepreneur, or someone building business literacy, understanding the three core financial statements is essential. Each one tells a different part of the company’s story:
🔹 Balance Sheet – Shows the company’s financial position at a point in time: Assets, Liabilities, and Equity. It answers “What do we own, and how is it funded?”
🔹 Income Statement – Reflects performance over a period: Revenue, Expenses, EBITDA, EBIT, and Net Income. It answers “Are we profitable?”
🔹 Cash Flow Statement – Tracks real cash movement through Operations (CFO), Investing (CFI), and Financing (CFF). It answers the most critical question: “Do we have liquidity to survive and grow?”
💡 Profit is an opinion. Cash is a fact.
Understanding how these statements connect gives leaders better visibility, stronger decision-making, and sustainable growth.

Most people mix these two up — but liquidity and solvency tell very different stories about a company’s health.
Liquidity = short-term survival
Can the company pay its bills this month?
Solvency = long-term sustainability
Can the company survive the next few years?
Quick way to remember: ✔️ Liquidity = cash flow today
✔️ Solvency = financial strength tomorrow
A company can be:
Liquid but not solvent (cash today but drowning in debt)
Solvent but not liquid (valuable assets but no cash to pay suppliers)