Audit, independent review and finance support in South Africa

About

South Africa is where several of our partners trained, and it remains one of the strongest technical accounting markets in the world. We work with South African companies that need a statutory audit, with the much larger population that needs an independent review rather than an audit, and with local subsidiaries of UK and Canadian groups that have to report under two sets of expectations at once.

The Companies Act sets the level of assurance by reference to a public interest score rather than revenue alone. The score is calculated at each financial year end under Regulation 26: one point for every employee on average, one point for every R1 million of turnover, one point for every R1 million of third party liabilities, and one point for every holder of a beneficial interest in the company’s securities. Because it moves with headcount, debt and shareholder register as well as revenue, companies cross the thresholds without noticing.

The practical consequence is that a good number of South African companies are paying for a statutory audit when an independent review would satisfy the Act, and a smaller number assume they fall under the owner-managed exemption when they do not. Both are worth checking annually rather than assuming last year’s answer still holds.

Our work is partner-led. The person who scopes the engagement is the person who reviews the file and signs it, and we are direct with you about which level of assurance your position actually calls for.