BBO Consulting

Independent
Review

Independent Review of Annual Financial Statements

An independent review of annual financial statements offers a moderate level of assurance on their reliability and credibility, contrasting with the higher assurance level of an audit. At BBO Consulting, we provide Independent Review of Annual Financial Statement services.

Conducted by a qualified individual not involved in the statements’ preparation, this review adheres to the International Standard on Review Engagements (ISRE) 2400 (Revised). While certain South African companies must undergo independent reviews, others opt for it, while some mandate audits due to the higher assurance level they provide.

What companies need to be independently reviewed?

According to the Companies Act 2008 of South Africa, certain companies are required to undergo an independent review or audit of their annual financial statements:

  • Private companies not owner-managed with a public interest score below 100.
  • Owner-managed private companies with a public interest score between 100 and 350.

 

The public interest score considers factors like employee count, third-party liability, turnover, and securities stakeholders.  Non-profit, state-owned, and public companies are mandated to have their annual financial statements audited.

Process: Independent Review of Annual Financial Statements

  • Adhering to the International Standard on Review Engagements (ISRE) 2400 (Revised) by IAASB.
  • Understanding your entity, including internal controls, policies, and framework.
  • Conducting analytical procedures and inquiries on financial statements.
  • Identifying and resolving material misstatements or discrepancies.
  • Issuing a review report ensuring professionalism, ethics, and clear reporting.