Independent Review | Annual Financial Compliance for SMEs

Independent Review Annual Financial Compliance for SMEs

Smaller businesses may not require a full annual audit but an independent review of all financial statements and accounting records is necessary to ensure legal compliance. Our expert teams are equipped to provide this service in line with industry best practices, the Companies Act and SARS regulations.

Are you looking for a trusted relationship with experienced financial experts? West-Evans can help your business grow.

Independent Reviews: economical audits for smaller enterprises

An independent review is designed for SMEs and is less intensive than an audit, but it serves the same purpose: to verify the contents of your business’s financial statements and tax documents to provide limited assurance. Our team is fully accredited by the South African Institute of Chartered Accountants to carry out this type of annual financial verification in accordance with the requirements of ISRE2400 and the Companies Act.

How an Independent Review Works

The following steps are involved in a typical independent review:

  • Analysis of account balances on the company’s financial statements
  • Sampling and cross checking of financial data
  • Careful analysis to ensure that the financial statements were prepared in line with regulatory standards
The key difference between an independent review and an audit is the depth of analysis and the size of financial sampling involved.

  • An independent review is less time consuming, resulting in shorter turnaround times with the aim of achieving full compliance on or before the submission deadline.
  • Interviews will be done with management, however an in-depth audit of all documents relating to the financial statements is not necessary for an independent review, reducing the cost in terms of time and auditing resources.

Does your business require an audit or independent review?

The Companies and Intellectual Property Commission (CIPC) scores businesses on a scale known as the Public Interest Score (PIS). If your business scores 350 points or more, you’ll most likely need an annual audit – but smaller businesses frequently score below this threshold and can opt for an independent review.

Our expert auditors and professional accounting team provide a range of compliance solutions and will assess the auditing needs of every new client at West-Evans to determine which type of assessment is most appropriate with the least disruption to your business.