The Companies Act 2008 brought cost relief to the small to medium private companies that are not owner-managed by eliminating the need for a full, but still assuring some review of the data via the independent review.
The independent review provides the user with limited assurance by obtaining and analysing sufficient evidence to provide a conclusion on the financial statements.
Independent reviews are done for companies with a Public Interest Score (PIS) of less than 100.
Here's how PIS is calculated:
- 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
Different types of Independent reviews
Analytical Review Procedures
Are used to assess the reasonableness of account balances, amounts and transactions relating to the financial statements.
The analytical review procedure includes:
- Assessing the reasonableness of a balance based on the entity, and the environment in which it operates
- Assessing the plausibility of a relationship between certain accounts
- Emphasizing, or bringing attention to specific problem accounts/balances as well as determining materiality
- Reviewing of expenses and revenues
- Analysing certain trend behaviours within an entity
- Determining the depreciation of assets and analysing salary expenses
Factual Reviews for loan applications
For individuals as well as companies by verifying required loan application criteria such as:
- Cash flow,
Non-Profit Company Compliance procedures
- Non-Profit Company Compliance procedures
- Verifying company and accounting records,
- Submitting Annual Returns
- Expense Reporting
- Preparation of Annual Financial Statements
- Reporting on solvency and reckless trading as well as
- Providing financial advice and recommendations to the improve management and financial status of the Non-Profit Company
- Submitting company amendment notices to CIPC.
AT Accounting Independent Review pledge of service:
- We are a professionally licenced Accounting firm
- We offer our services at affordable rates
- We treat our clients’, and their information with care
- We go the extra mile to ensure client satisfaction and ensure that our clients understand the work we have done
- We want to see our clients, and ourselves, grow.