Financial Statements, Audits & Independent Reviews

Under the New Companies Act

Company Public Interest Score (PIS) Calculator

The result updates automatically as you complete the fields.

PIS = Avg Employees + (Turnover ÷ R1m, rounded up) + (3rd-party Liabilities ÷ R1m, rounded up) + Shareholders/Members.
Outcome rules:
- PIS ≥ 350 → Audit required.
- PIS 100–349 → If AFS compiled internally, Audit; if compiled by an independent professional, Independent Review.
- PIS < 100 → If owner-managed, No audit/review; otherwise Independent Review.

Tip Use whole numbers (no commas) – we format automatically.

Public Interest Score—

0350+

Enter values to see a breakdown.

Audit & Independent Review Requirements (Companies Act 71 of 2008)

The Companies Act 71 of 2008 and its Regulations (2011) set out when a company's annual financial statements (AFS) require an audit, an independent review, or a compilation only. The trigger is mainly your Public Interest Score (PIS), ownership/management structure, and whether the AFS are compiled internally or by an independent professional.

Exempt (Compilation Only)

Private company with PIS < 100andowner-managed (all directors are shareholders).
Voluntary assurance is still permitted for governance/stakeholders.

Mandatory Independent Review

Non-owner-managed profit or non-profit company, PIS 100–349, and AFS independently compiled → review by a Registered Auditor or member of a body accredited by IRBA.
Non-owner-managed with PIS < 100 → review by a Registered Auditor, IRBA-accredited professional, or a person qualified as a CC accounting officer.
Independence: The reviewer must not have prepared the AFS.

Mandatory Audit

All Public and State-Owned companies.
MOI explicitly requires an audit.
Holds assets in a fiduciary capacity > R5m for unrelated persons at any time in the year.
Specific NPCs (incorporated by/for the state, organs of state, SOEs, foreign entities, or statutory function).
Any company with PIS ≥ 350 (regardless of compiler).
PIS 100–349and AFS internally compiled.

Public Interest Score (How to Calculate)

Employees: Average number employed during the year.
Turnover: Every R1m (or part) of gross annual turnover.
Third-Party Liabilities: Every R1m (or part) of year-end third-party liabilities (exclude related-party loans & deferred tax).
Shareholders/Members: Count each person with a beneficial interest (profit companies) or each member (NPCs) at year-end.