Auditing Services In South Africa

Your audit requirement depends on several factors, including your Public Interest Score, company structure, financial statement preparation and any requirements contained in your Memorandum of Incorporation.

If the position is unclear, we can review the circumstances of your business and help you understand which level of assurance applies before the engagement begins.

A Public Interest Score, often referred to as a PIS, is a measure used under South African company regulations to help determine a company’s financial reporting and assurance requirements.

It reflects factors such as turnover, employees, liabilities and the number of individuals with a beneficial interest in the company. The resulting score can influence whether a statutory audit or independent review is required.

The Public Interest Score is calculated annually using criteria set out in the Companies Regulations. These include employee numbers, third-party liabilities, turnover and the number of individuals who hold a beneficial interest in the company.

The calculation can become less straightforward as a business grows or its structure changes. We can help determine the score and explain what it means for your reporting obligations.

An independent review may be available when a company does not fall within a statutory audit requirement and no other requirement makes an audit necessary.

It is not simply a cheaper substitute for an audit. The company must first qualify for an independent review based on the applicable requirements.

A statutory audit involves a broader examination of the financial statements and supporting evidence and provides a higher level of assurance.

An independent review has a narrower scope and provides moderate assurance. It generally relies on analytical procedures and enquiries rather than the extensive testing associated with a full audit.

Assurance is the broader concept. It refers to an independent professional engagement that increases confidence in financial or other information.

An audit is one form of assurance engagement and provides a high level of assurance over financial statements. An independent review is another form, but provides a lower level of assurance than an audit.

An independent review will generally require less work than a full statutory audit because the scope and level of assurance are different. This can result in a lower cost.

The actual fee depends on factors such as the size and complexity of the business, the condition of the accounting records and the work required to complete the engagement.

A qualified audit opinion means the auditor has identified a specific matter that affects the financial statements, but the issue is not considered so widespread that the financial statements as a whole cannot be relied upon.

The audit report will explain the basis for the qualification so directors and other users of the financial statements can understand the issue.

An error does not automatically mean the audit cannot be completed. We raise matters that require clarification or correction and give management an opportunity to provide additional evidence or make appropriate adjustments.

The effect on the final audit report depends on the nature, size and significance of the issue and how it is resolved.

Incomplete records can delay the engagement and may limit the evidence available to support figures in the financial statements.

We identify what is missing and explain what information or supporting documentation is still required. Addressing these gaps early can make the remainder of the engagement considerably easier to manage.

Ideally, the accounting records should be current and reconciled before audit work begins. If the bookkeeping is behind, there may be additional work required before reliable financial statements can be audited or reviewed.

As we also provide accounting services, we can discuss the condition of the records and determine what needs to be addressed before the assurance engagement moves forward.

Changing accountants does not prevent an audit or independent review from taking place. We may need information from both the current and previous accounting records to understand transactions and balances across the full reporting period.

A clear handover and access to the relevant supporting documentation can help prevent unnecessary delays.

Management will need to provide access to financial records, supporting documentation and explanations where questions arise. Directors or senior management may also need to confirm certain information and respond to matters identified during the engagement.

We keep requests focused so your team understands what is needed and why, rather than sending broad information requests without context.

Yes. We can look at your company structure, Public Interest Score, reporting requirements and other relevant factors to help determine if a statutory audit, independent review or another approach applies.

This can be particularly useful when the business has grown, ownership has changed or existing reporting requirements are no longer clear.

Yes. We explain material findings and areas that require management attention so the issues are understood rather than simply appearing in a final report.

Where appropriate, we can also discuss weaknesses in records, controls or reporting processes that management may want to address before the next reporting period.