According to the New Companies Act of 2008, not all companies are required to be audited, as was the case in the past.
The new audit requirements stipulate that all Public Companies, as well as Private companies deemed to be in the public interest, are to be audited.
Companies not requiring an audit in terms of the Act, may require an independent review, or a compilation report. The level of compliance required by each company will depend on various factors, including but not limited to the nature of the shareholders, the ownership structure and the public interest score.
PUBLIC INTEREST SCORE
The audit requirement of a company rests with the result of the public interest score. Different elements of the business are assigned points based on turnover, liabilities, number of employees and number of shareholders. The result of this calculation will determine whether or not the company is to be audited. The basic rule of thumb is that if the company’s total public interest score exceeds 350, then they are required to be audited. If the public interest score is between 100 and 350, an independent review may be required. If the score is below 100, a simple compilation report will suffice.
WE CAN HELP
The issuance of a compilation report by a professional accountant is generally the most cost effective option, when compared to an audit or independent review.
If you are unsure of the level of compliance required of your company, please do not hesitate to contact us. We will gladly calculate the public interest score of your company and assist with your particular requirements, whether it be a compilation report, independent review or an audit.
Accountants • Tax Consultants