CA Viewpoint | April 2023

Dear FC client

This newsletter will serve as a guideline on the different assurance engagements for companies. It remains your responsibility as a law-abiding citizen of South Africa to adhere to all company act requirements and submit the correct assurance engagement to SARS, CIPC and other third-parties. At FC Chartered Accountants – in partner with Future Co Auditors we can assist you with compilations, independent reviews and audits of financial statements.

Contact us for more information.

  • Call us on 012 807 1714
  • Email us on [email protected]
  • WhatsApp us on 071 071 7206
  • or visit our website: www.fcfin.co.za

IMPORTANT DATES

Please take note of the following important dates:

  • EEMP501 Reconciliation            31 May 2023
  • WCA/COIDA/RMA                     31 May 2023
  • FSCA Audit Reports                    30 June 2023
  • EAAB Estate Agent Report        30 June 2023

Kind regards,
The FC CA team

THE COMPANIES ACT NO.71 OF 2008 | REGULATION 30: ANNUAL FINANCIAL STATEMENTS

Each year, a company must prepare annual financial statements within six months after the end of its financial year, or such period shorter as may be appropriate to provide the required notice of an annual general meeting in terms of section 61(7).

The annual financial statements must:
a) Be audited in the case of a public company; or
b) In the case of any other profit company or non-profit company:
i. Be audited, if so, required by the regulations made in terms of subsection (7) considering whether it is desirable in the               public interest, having regard to the economic or social significance of the company, as indicated by the relevant factors.
ii. Be either:
• Audited voluntarily if the company’s MOI or shareholders resolution so requires; or
• Independently reviewed.

THE COMPANIES ACT NO.71 OF 2008 | REGULATION 26(2)

Every company must calculate its public interest score at the end of each financial year, calculated as:
a) A number of points equal to the average number of employees of the company during the financial year;
b) One point for every R 1 million (or portion thereof) in third-party liability of the company, at the financial year end;
c) One point for every R 1 million (or portion thereof) in turnover during the financial year; and
d) One point for every individual who has a direct or indirect beneficial interest in the company.

PUBLIC INTEREST SCORE CATEGORIES FOR PRIVATE COMPANIES

DIFFERENT TYPES OF ENGAGEMENTS

Audit:

An audit is an independent examination of the financial information of any entity, whether profit-orientated or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.

Independent review:

An independent 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).

Compilation engagement:

A compilation engagement is a type of engagement where a company engages an accountant to prepare and present financial statements. It is not designed to express an opinion or provide assurance regarding the information contained in the financial statements.

DIFFERENCE IN ENGAGEMENTS