The Companies Act requires certain companies to be audited and others to have its financial statements independently reviewed.

The Companies Act of 2008 introduced Independent Reviews to make it less of a financial burden for smaller and start-up companies.

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Many companies are switching to Independent Reviews because they are quicker, cheaper and fit for purpose. A bank will often request an Independent Review (rather than an audit) before lending money to a company. Stakeholders and key shareholders may ask for an IR to ensure their money is in safe hands. The level of assurance is lower than for an audit, but is often sufficient for the needs of those requesting it

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The key determinant of whether a company is required to perform an audit or an IR is its Public Interest Score (PIS), now required by the Companies and Intellectual Property Commission (CIPC). If your company scores above 350, an audit is required. Below that, an IR will suffice.

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Here’s how the PIS is calculated:

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1 point for every employee

1 point for every million Rand owed to a third party

1 point for every million Rand turnover in one financial year

1 point for every shareholder or beneficiary

 

Companies that do not require a statutory audit but want to provide other parties, such as banks and investors, more information about your company, our firm provide you with an independent review report. Our firm will also review and reflect information on your company’s financial standing, including sales, purchases, payroll and VAT.