Quite a few misconceptions here, which I will try to help clarify:
A. General
1. There is no difference between companies and cc's when it comes to determining whether they require an independent review or an audit.
2. The trust accounts of attorneys require an audit regardless of whether they are incorporated, a partnership or a sole proprietor.
3. The criteria in (1) above apply equally to personal liability companies (like attorneys, designated "inc.")
4. The trust accounts of estate agents are required to be audited, regardless of whether they are incorporated as a company, or cc, or a partnership or a sole proprietor.
B.Companies / cc's that are required to be audited
1. Any company whose PIS is 350 or more, is required to be audited.
2. Any company that holds assets in a fiduciary capacity for persons who are not related to the company and that exceeds R5m
3. Any company with a PIS of 100 or more; if it's annual financial statements are internally compiled.
C. Exemption criteria
1. Companies will be exempt from independent review if all shareholders in the company are also directors of the company
2. Cannot be exempt from audit if required by Act
3. Cannot be applied by non-profit companies
4. Cannot be applied in companies where shareholders are juristic persons (cc's, companies, trusts etc), regardless of PIS ** not sure about this yet **
D. Who may do what
1. Audit – must be performed by a registered auditor.
2. Independent review, a member of an IRBA accredited professional body (presently only SAICA) or an auditor.
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