CC Accounting Officer

[Sebzon]

I have just registered a CC with a friend through the CC registration companies. The company provided their own accountant for registration. But we have to get our own accountant, and cc-guide states that it does not have to be a registerd CA but it can be a member of a recognized accounting profession.

My question is that does this mean anyone with an accounting qualification can do the job or this requires us to get the recognised company to do our accounting?

Thanks in advance!

[Marq]

Recognised accounting profession is a Professional accountant - someone belonging to SAIPA or a chartered accountant who would belong to SAICA. Either can do your cc's books and draw up afs's for you. There are many who operate on their own or within accounting firms who specialise in what you are looking for. Either can work for your purposes - just need to find one in your area. If you are looking for one, I guess they may be able to help you at SAIPA - go to here. Or ask the guys who set up the cc to recommend one to you and take it from there. Funny, I thought the whole reason for doing setups was to get the accounting work on the other side??

[daveob]

I thought the whole reason for doing setups was to get the accounting work on the other side??

I suspect that the OP is referring to an "off the shelf" cc that would have been purchased online, possibly via swiftreg.

I have also done this in the past. The main reason for using their services ( ie.. buying a cc from them ) is that the shelf companies they sell are already registered, so you can actually have a cc registered and up and running in 24 hours. ( compared to a lot longer if you go to register a new cc via cipro ).

[Marq]

I just wanted to remind those who think this shelf company story is a good idea The cc that you buy still has the original members and details listed for the period of time that it takes you to register the new CK2 and CK2a documents for changes -ie your own members accounting officer, registered address and chnge of name etc. This means that you do not 'own' your company and also means that you are at risk during this period if you for example have opened bank accounts and put large numbers therein. Nothing is officially yours until the new registration takes place.

The registration of the ck2 change documents will probably take as long as it takes the ck2 docs to be registered. I dont know what that time period is at the moment - used to be round about 6 weeks.

[sterne.law@gmail.com]

A cc requires an accounting officer to sign off the books. An accounting officer is one of two qualifications - a chartered accountant or a qualification from CIS, Chartered Institute of Secretaries(Secretary as in company secretary for JSE purposes). The books may be done by abyone only the financials need to be signed off by the accounting officer. It is not an audit, simply that the financials are prepared in the correct manner, a rather vague description.

[Marq]

This site seemed quite useful and has the full list of who can and who cannot do books.

[Sebzon]

Thanks

Thanks a lot for your help. I think my next step now is to get the accounting officer and then process the changes through CK2A.

[sterne.law@gmail.com]

Thanks a lot for your help. I think my next step now is to get the accounting officer and then process the changes through CK2A.

The new companies act should be in effect by year end. The cc will be done away with, although existing cc will continue. The act will make allowance for smaller businesses, based on turnover, to not require full audits as such.

[desA]

The new companies act should be in effect by year end. The cc will be done away with, although existing cc will continue. The act will make allowance for smaller businesses, based on turnover, to not require full audits as such.

Can you perhaps provide more information on what this new act may look like?

What would be defined as a 'smaller business'?

[Dave A]

Des, this discussion on the new companies bill should help.

[desA]

Des, this discussion on the new companies bill should help.

Thanks very much, Dave A. That's very useful information - very helpful indeed.

Time to do my homework on the new emerging business structures.

[sgafc]

A cc requires an accounting officer to sign off the books. An accounting officer is one of two qualifications - a chartered accountant or a qualification from CIS, Chartered Institute of Secretaries(Secretary as in company secretary for JSE purposes). The books may be done by abyone only the financials need to be signed off by the accounting officer. It is not an audit, simply that the financials are prepared in the correct manner, a rather vague description.

There are about 6 qualifications recognised for the duties of accounting officers.The fact that the books does not have to be audited, does not imply that a set of financial statements can just be cooked up.

The accounting officer still has to agree the financial statements with the books of account, and should have working papers to back up his investigations. As of this year, financial statements should comply with International Financial Reporting Standards(IFRS), failing which, criminal charges could be brought against the accounting professional. To be exempted, CC should apply for the implementation of Micro Gaap.

Closely held PTY(LTD), will also be exempted from audits.

[RogerH]

Hi, the new Companies Act creates 3 levels for Audit, Independent Review and (for most smaller companies - and cc's out there) EXEMPTION.

To provide some background a couple of concepts/issues are NB.

The main concept introduced into the business environment affecting financial reporting is one of "Public Interest", this in a nutshell is determined by the nature of a companies business, its size (turnover and assets) and it employee base. A significant factor in the new environment is the concept of STAKEHOLDERS (and in RSA the INCLUSIVE STAKEHOLDER concept that essentially means everyone has to be treated the same - i.e. shareholders are not preferential stakeholders (as elsewhere).

PS the same principles will apply to both companies and close corporations.

Together what this means is that the larger/more significant your "STAKEHOLDER FOOTPRINT" (my terminology), normally related to the size of your business (Co or CC), the more financial reporting requirements will be placed on you.

Some thresholds were published in the regulations (December 2009):
1. Exempt companies are those with the same people being both shareholders and directors, the nature of what they do is not public interest

2. Independent Review is broken down into 3 levels (Reprotign Standards in Brackets)
(i) Assets below R 5Mill/Turnover below R 20Mill (No prescribed Standard)
(ii) between this and; (ISRS 4400)
(iii) Assets R 100Mill/Turnover R 200Mill or 150 employees (ISRE 2400)

3. Audit, either
- State Owned
- Public Companies
- Private Companies (with a Public Interest)
- Voluntary Audit (any size company can voluntarily be audited)

There are some more "technicalities" that could influence this but this gives the framework...

(I hope this clarifies things - sorry to "burst" into lecture mode)