The permanent file usually contains documents and matters of continuing importance, which are required for more than one financial period. Information contained in a PAF include:

  1. Statutory material: governing the conduct, accounts and audit of the enterprise for companies a Companies Act (Cap 486). For a quoted company a copy of the Nairobi Stock Exchange regulations (NSE) is required.
  2. Rules and regulations of the enterprise. The Memorandum and Articles of Association. For a partnership, a partnership agreement.
  3. Copies of documents of continuing importance and relevance to the auditor.
  • Letter of engagement and minutes of appointment of the auditor.
  • Trade license.
  • Debenture deeds.
  • Leases.
  • Guarantees and indemnities entered into.
  1. Addresses of the registered office and all other premises with a short description of the work carried on at each.
  2. An organisation chart showing: -
  • Principal departments and subdivision thereof.
  • Names of responsible officials showing lines of responsibility.
  1. List of books and other records and where they are kept names, positions, specimen signatures and initials of persons responsible for books and documents account codes and classifications should be held.
  1. An outline of history of the organisation special mention or reserves, share capital,
  2. Prospectus, acquisitions of businesses and provisions.
  3. Accounting policies used for material areas such as stock, work in progress, depreciation, research and development.

Notes of interviews and correspondence of internal control matters and all past management letters.A note of the position the company in the group and all subsidiaries and associated companies with holding therein.

  1. A list of directors their shareholdings and service contracts.
  2. A list of company’s advisors, bankers, stockbrokers, solicitors, valuers.