types of companies:
Private Company –Owner-Managed
- This company is also known as (Pty) Ltd and most companies in South Africa are registered as these type of companies
- Shareholders are also Directors of the business.
- Shareholders are involved in the running of the business on a regular basis.
Private Company –Not Owner-Managed
- This company is also known as (Pty) Ltd and most companies in South Africa are registered as these type of companies.
- Non or not all shareholders are directors of this company or
- Shareholders in this company don’t play active role in the managing of this type of company
Other
- State owned entity
- Public company
- Non-Profit organisation
types of reports:
Compilation or accounting officer report
- This report is guided by the engagement that the Accountant and the business sign.
- This report was mainly used by Close corporations (CC) but since you can’t register a CC most companies qualify for this type of report.
- It depends on you Public interest score as well as how financials are prepared
Review report
- This is a limited assurance report and is considered an alternative to a full audit.
- Most Private companies can opt for this type of report.
- Your public interest score and how your financial statements are prepared will determine if you qualify for this report or not.
Audit Report
- Assurance report
- SOC and Public companies are required to be audited
- Your public interest score and how your financial statements are prepared will determine if you qualify for this report or not.
qualifying criteria:
Compilation or accounting officer report
- Owner-Managed with public interest score less than 100 and the financial statements are internally prepared
- Owner-Managed with public interest score below 350 and the financial statements are independently prepared.
- NPO’s depending on the structure of the organization
Review report
- Non-owner managed with PI score less than 100 and the financial statements are internally prepared.
- Non-owner managed with PI score less than 350 and the financial statements are independently prepared.
- Owner managed with PI score less than 350 (100 if the financial statements are internally prepared) can opt for this report.
Audit Report
- Any company with a PI score above 350
- SOE or Public company
- Both owner and non-owner managed companies with a PI score between 100 and 350 where financial statements are prepared internally.
The video below goes in to more details with examples of how a company can better select the correct report for themselves.
You can also download the full article below
YouTube Video
Podcast
Coming soon.