Auditing & assurance
An independent, reliable, and ethically sound audit gives your company credibility and allows the public to trust in the accuracy of the results. In fact, your audit should enable you to limit your financial and business risks, therefore contributing to business success. It can assist business growth through services such as internal audits, special investigations, due diligence and factual findings. Audits are performed by independent auditors, certified public accountants (or chartered accountants) skilled in the examination of the financial records of companies with which they are not affiliated.
What is an audit?
An audit involves the examination of the annual financial report of a business by an independent auditor. An annual financial report includes a balance sheet, income statement, a cash flow statement, a statement of any changes in equity, summary notes of significant accounting policies and other required explanatory notes.
The purpose of an audit
The reason for an audit is simple. An independent auditor has to decide whether the information presented in the financial report, in its entirety, reflects the business's financial position at a given date, for example:
- Have the business's profits and losses been properly assessed?
- Does the balance sheet correctly record details of what is owned and owed?
Types of Assurances
This provides a lower but reasonable level of assurance than an audit. This level of assurance still provides great value to the user of the financial statements.
An independent review can be performed more cost-effective that an audit.
This will provide the users and shareholders with the highest level of assurance on their financial statements.
The additional value brought by an audit can in most cases be worth the additional effort and cost required.
This type of assurance can be seen as a sub-section of internal audit. Performing a system audit on a specific area in the company or business provides the directors with a level of comfort that their internal control environment is sufficient to address any misstatement, errors or fraud that might occur.
Take The Next Step and Get Audited
When are companies required to be independently audited by law?
When private or personal liability companies need to be audited (according to the Companies Act of 2008) they must file their latest Audited Financial Statements with their annual return. These private companies are required to have their annual financial statements audited:
- Private or personal liability companies with assets over R5 million for persons who are not related to the company;
- Any private/ personal company that compiles its financial statements internally and has a Public Interest Score (PIS) of 100 or more;
- Any private or personal liability company that has its financial statements compiled by an independent party (such as an external accountant) and that has a PIS of 350 or more;
When a company has not opted to have its annual financial statements audited, and an audit is not required by its Memorandum of Incorporation, a private or personal liability company (not managed by its owners) could be subject to independent review:
- if the company compiles its financial statements internally and has a Public Interest Score of less than 100;
- or the financial statements are compiled independently, and its Public Interest Score is between 100 and 349.
Private or personal liability companies that are not required to have their financial statements audited may still choose to voluntarily file their audited or reviewed statements with their annual returns.
Take the next step and get audited!
How Is An Audit Conducted?
We offer independent auditing services as we provide you with external accounting functions and therefore we are a public accounting firm not connected to your business. We take our independence seriously while still striving to maintain great relationships with you, our clients. With that in mind, we aim to add value to our client's businesses by providing more than only statutory compliance, ensuring our auditing services will give you an objective review of your company’s financial information.
- Your management will prepare the financial report in accordance with legal requirements and financial reporting standards, which your directors will then approve.
- First, our auditors gain an understanding of your business's activities and take into consideration economic and/or industry issues which will have affected the business during the reporting period.
- Our auditors identify and assess any risks for each activity listed in the report and assess which risks could significantly impact the financial position or performance and the measures your business has put in place to mitigate said risks.
- Next, our auditors consider what your management has put in place, taking into consideration your risks and controls to ensure the financial report is accurate while examining supporting evidence.
- Our auditors will now decide whether the financial report presents an accurate overview of your business's financial results and position, its cash flow, and whether it complies with financial reporting standards.
- Lastly, our auditors prepare an audit report with their conclusions to be presented to your business's shareholders or members.
Auditing is a complex process, with procedures prescribed by International Auditing Standards. We maintain a high quality of compliance and have passed all peer reviews conducted by the Independent Regulatory Board for Auditors (IRBA). Consequently, you get to benefit from a cost-effective and efficient audit, with an emphasis on careful planning.