What are Independent Reviews
A review is a limited assurance engagement where the practitioner performs primarily inquiry and analytical procedures to obtain sufficient appropriate evidence as the basis for a conclusion on the financial statements as a whole, expressed in accordance with the requirements of ISRE 2400 (Revised).An Independent Review is a review engagement performed by a practitioner who was not involved in the preparation of the financial statement.In terms of Regulation 29(4) an independent review of a company’s annual financial statements must be carried out:
- in the case of a company whose public interest score for the particular financial year was at least 100, by a registered auditor, or a member in good standing of a professional body that has been accredited in terms of section 33 of the Auditing Professions Act; or
- in the case of a company whose public interest score for the particular financial year was less than 100, by:
- a person contemplated in paragraph (a); or
- a person who is qualified to be appointed as an accounting officer of a close corporation in terms of section 60 (1), (2) and (4) of the Close Corporations Act, 1984 (Act No. 69 of 1984).
Independent reviews are not required for owner managed profit companies, but can be performed voluntarily if the public interest score is less than 350 and the financial statements are independently compiled, or if the public interest score is less than 100.An independent review can also be performed voluntarily for CC’s but the cost versus benefits needs to be considered.
Standards and Pronouncements
Guides and Circulars