Do you know that Finsolve Accounting & Tax solutions, in association with Bizfacility have accredited Independent Review practitioners that will conduct an independent review of your business, as required by the Companies Act of 2008.
Who is required to have an Independent Review (IR) performed?
Pty Ltd companies whose year end is post 1 May 2011, and meet the following requirements:
1. Public Interest Score (PIS) is greater than 100 but less than 350 points and
2. Your Financial Statements are prepared by external accountants
1. Public Interest Score is less than 100 points
Please note that if your company is owner – managed ( every Shareholder is also a Director) and your PIS score is less than 350 points, or you Close Corporation has a PIS score of less than 350 points, your company / close corporation is exempt from both an external audit and IR.
For companies which fall into the above category no longer require an audit, but may elect to have an Independent Review.
What is an Independent Review?
- A review engagement which provides limited / moderate assurance (as opposed to reasonable assurance in an audit) that a clients Financial Statements are free of material misstatements.
- In performing a review, the following matters are expressed:
o Objective of the service performed
o Managements responsibility for the financial statements
o Scope of the review and compliance with the ISRE 2400 Statement on Reviews
o Unrestricted access to records and accounts of the client.
- On successful conclusion to the review, the review report will express an assurance in the following format:
o “Based on our review, nothing has come to our attention that causes us to believe that these financial statements do not present fairly, in all material respects, the financial position of the client, financial performance and cash flows, for the year ended, in accordance with International Financial Reporting Standards for Small and Medium-Sized Entities.”
Public Interest Score
Every company must calculate its ‘public interest score’ at the end of each financial year, calculated as the sum of the following:—
(a) a number of points equal to the average number of employees of the company during the financial year;
(b) one point for every R 1 million (or portion thereof) in third party liability of the company, at the financial year end;
(c) one point for every R 1 million (or portion thereof) in turnover during the financial year; and
(d) one point for every individual who, at the end of the financial year, is known by the company, to directly or indirectly have a beneficial interest in any of the company‘s issued securities
Please contact us for further inquires and information.