Independent review
What is an Independent Review
An Independent Review is several procedures performed by an individual or company that is independent of the business being reviewed and who was not involved in the preparation of the Financial Statements.
The fact that the Independent Reviewer is independent and had to meet certain academic and practical experience to be registered as such, means that a reader of the Financial Statement is more likely to rely on the accuracy of the Annual Financial Statements.
As the procedures performed are less than an audit, a review is known as a limited assurance engagement.
Does your business need to have its Annual Financial Statements Independently Reviewed?
NO
If your business is a sole proprietor or partnership you do not need an independent review.
If all shareholders are directors and the Public Interest Score of the Company is less than 100 you also do not need an independent review. Please scroll down to see how the Public Interest Score is calculated.
YES
If your business is a private company and all shareholders are not directors the Annual Financial Statements need to be independently reviewed. Even if the company is very small.
How is the Public Interest Score calculated
Score your business 1 point for each of the following.
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for each R 1 million (or part thereof) of turnover/sales
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for each employee. Work on the average number of employees employed during the year.
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for each shareholder
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for each R1 million or part thereof in third-party/external debt
The number of points your business scores will determine whether your business need to be independently reviewed or audited. It will also determine who can perform the Independent Review.
Who can perform the review
Less than 100 points.
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An accountant who is registered at one of the Professional Accounting Bodies in South Africa as an Accounting Officer may perform the Review. This person also needs to be registered as an Independent Reviewer at their Accounting Body after meeting the prescribed requirements.
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An auditor registered at IRBA
More than 100 points.
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An auditor registered at IRBA
Please note when the Public Interest Score is more than 350 the Annual Financial Statements need to be audited and not reviewed. If your public interest score is above 100 and the Annual Financial Statement was internally compiled (by your company accountant) you will also need an audit.
We perform Independent Reviews for companies with a Public Interest Score of less than 100 points.
Please contact us if your business needs an Independent Review.
