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COMPANIES THAT ARE EXEMPT FROM ANNUAL AUDITS / INDEPENDENT REVIEWS

Private companies with a public interest score of less than 100 and where all directors of the company are also the shareholders.

WHO MUST BE AUDITED IN TERMS OF THE NEW 2008 COMPANIES ACT

- all public and state owned registered entities;
- where a company memorandum of incorporation requires this;
- a company that holds assets in a fiduciary capacity for persons not related to the company that exceeds R5 million during the year;
- any non profit company that was incorporated by the state or a state-owned company or any international entity;
- any company that have a public interest score >100 points and where the annual financial statements were internally compiled;
- any company with a public interest score of 350 points or more.

WHO MUST BE INDEPENDENTLY REVIEWED IN TERMS OF THE NEW 2008 COMPANIES ACT

- non-owner managed profit and non-profit companies with a public interest score of 100 or more must be performed by a registered auditor;
- non-owner managed profit and non-profit companies with a public interest score of 99 or less can be performed by an independent reviewer

HOW TO CALCULATE THE PUBLIC INTEREST SCORE OF A COMPANY (PIS)

one point for the average number of employees employed during the year;
one point for every R1 million or part thereof of turnover;
one point for every R1 million or part thereof of third party liabilities;
one point for every director or shareholder of the company;
one point for every member of any non profit company or a member of an association that is a member of the non profit company.

To calculated if your company needs to be audited or independently reviewed see diagram below:

FINANCIAL STATEMENTS, AUDITS AND INDEPENDENT REVIEWS UNDER THE NEW COMPANIES ACT