In terms of the Companies Act, 2008 (Act 71 of 2008), and the Regulations, it state that not all companies’ financial statements need to be audited. They will however, be subject to an independent review. Some companies will not require either an audit or an independent review of their financial statements. A company must have its annual financial statements independently reviewed in accordance with ISRE2400 if it satisfies the Act and Regulations.
This regulation applies to a company unless in terms of section 30 (2A), it is exempt from having its annual financial statements either audited or independently reviewed.
(a) Any profit or nonprofit company, if in the ordinary course of its primary activities holds assets in a fiduciary capacity for persons who are not related to the company and the aggregate value of such assets held during the financial year exceeds R5 million.
(b) Any other company who’s PIS score (Public Interest Score) is 350 or more or is at least 100, if its annual financial statements for that year were internally compiled.
Independent reviews are required by all companies whom:
- Are not required in terms of the Act to be audited and/ or
- Do not choose to be voluntarily audited and/or
- Do not meet the exemption set out in the Act
PATC offers the above service to clients who require an independent review or are obligated according to the Companies Act.