Time in which an audit must be completed?

[BusFact]

Does anyone perhaps know if there is a certain time frame in which a company audit has to be completed after its year end?

Assume that the company is required an audit for the above question. Then if it doesn't require one, is there still a dead line for its review or similar to be done?

Thanks.

[dellatjie]

In terms of section 30 of The Companies Act, the financial statements, and if I read it correctly, the audit, must be completed within 6 months after yearend.

Our auditors sent us a letter last year informing us that it is a reportable irregularity if we do not comply with the Companies Act, and therefore they will be obliged to report you at IRBA should your financials not be finalised on time.

That being said, IRBA will be very busy should all auditors report reportable irregularities everytime they should...

[CLIVE-TRIANGLE]

That being said, IRBA will be very busy should all auditors report reportable irregularities everytime they should...

and then some!
It is as Dellatjie says, the Act requires that financial statements be prepared within 6 months, regardless of whether they are compiled, reviewed or audited.

[BusFact]

Thanks guys, that's what my bank said and I thought they were talking nonsense. Looks like I'm wrong, good thing I checked with you lot.

Can't say I'm overly worried about being reported to the IRBA though .

Issues it may cause with SARS are a bit more concerning though.

[dellatjie]

Interesthing though, is that SARS's deadline is 12 months after yearend. Now my question is, why would there be a delay between the 2 dates, as you will be paying 89 Quat Interest as of 1 October anyway on outstanding amounts due...

I think it is just better to try and work towards 6 months, then the financials are ready for all possible purposes, be it the companies act, SARS or the bank.

[CLIVE-TRIANGLE]

Well, one reason is to delay the tax bill. You can make a voluntary 3rd prov payment (top up) at 31/08 and still avoid penalties, but if you have already submitted the tax return you are screwed. But generally speaking, if you know you will have to pay then it makes sense to do it as late as possible, but I take your point about 89 Quat