Calculation of public interest score (PIS)

Changes to Memorandum of Associations to comply with the new Companies Act 2008 (Act no 71 of 2008)

Compiling of Independent Reviews Compiling of financial statements for other auditors and reviewers


What is an Independent Review?


An Independent Review is an alternative assurance engagement where the independent reviewer provides limited assurance on a set of annual financial statements when compared to that of the reasonable assurance provided by the external auditor. Assurance is the degree or level of trust the users can place on the credibility of the information contained in the annual financial statements. The Companies Act 71 of 2008 recognises SAIPA members as Independent Reviewers. This is a totally new line of reporting for Professional Accountants (SA), and SAIPA is constitutionally bound to ensure that its members do not take up appointment for duties that they are not competent to conduct.

Can SAIPA members do Independent Reviews?

The Companies Act 71 of 2008 recognises SAIPA members as Independent Reviewers. However, this is a totally new line of reporting for Professional Accountants (SA), and SAIPA is constitutionally bound to ensure that its members do not take up appointment for duties that they are not competent to conduct.

In terms of the Companies Regulations "Accounting Officers" can conduct independent reviews for private companies and owner managed entities (these are entities with a Public Interest Score(PIS) of less than 100 and below), SAIPA has amongst other things appealed to the department of Trade and Industry (the dti) against this exclusion, and has given an undertaking that Professional Accountants that would have been trained and certified by the Institute should also be allowed to conduct reviews on the entities with PIS of 100 to 350.