Changes in the Companies Act has brought some relief for businesses of all sizes, in some cases these have relieved medium sized companies from the need for an audit (and you can read a post on it here). It has also however, also affected Close Corporations, who are now equally bound by the Public Interest Score (PIS), and may now need an independent review to remain compliant.
The cost of an Independent Review is from R4,950.00 (excl. vat).
A large number of PTY’s no longer need to be audited, and an Independent Review will suffice. Companies meeting the criteria for a review should consider it, as it will save them a lot of time and money when compared to undergoing an audit.
An organisation will need to calculate their Public Interest Score (PIS) before they can determine whether they would require an AUDIT or INDEPENDENT REVIEW. The PIS is determined by annual turnover, number of shareholders, number of employees, and the amount of third party liabilities.
The following documentation is required to complete an INDEPENDENT REVIEW;
• Annual Financial Statements.
• Trial Balance.
• Detailed Ledger.
• Customer Ledger.
• Supplier Ledger and statements.
• Fixed Asset Register.
• Lease and loan agreements together with the amortisation schedules if applicable.
• Bank Statements.
• Statutory returns submitted.
• Copies of registration document (COR14.1, COR14.1A, COR14.3, COR15.1A).