Which companies require an audit

Do I need an Auditor

Companies do not require a compulsory audit as was the case with the old Act. Companies are now judged on their Public Interest Score (PIS) which is based on a points system and calculated as follows:

1)      1 Point for each employee

2)      1 Point for each R1m turnover p.a.

3)      1 Point for each R1m unsecured debt

4)      1 Point for each individual shareholder

Only when the total of all these points exceeds 350, then an auditor is required.  Obviously most people do not reach here.

Do I need an Accounting Officer

Accounting Officer is the term that was linked directly with CC's. In accordance with the CC Act, your company books need to be signed off by an Accounting Officer. This is not an Audit. Your accounting officer was also specified to CIPC, when a CC was registered..

New Pty's, who do not require an Audit, are not required to have an Accounting Officer. However they are expected to maintain a full set of books, at the end of a financial year. They are also required to submit them to SARS as part of their tax return.

Old Pty's who were incoroporated under the old Act and the old style MOI, are needed to have an audit, unless they choose to adopt the new MOI in line with the New Company Act, where they are treated as New Ptys

Annual Returns (a small fee paid to CIPC to keep your company registered) are supposed to be accompanied with a Financial Accountability Statement, which specifies the name of the individual that maintains your books on a day to day basis.

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