Independent Review

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Independent reviews for trustworthy evaluations

As a business owner, you know how critical it is to comply with legal regulations. Being compliant allows your business to grow and helps you avoid penalties and the unpleasant prospect of forced deregistration. However, keeping track of changes to the legal criteria might be difficult.

Which is why independent reviews are so important. Let’s discuss what independent reviews are and how to identify if your business needs them.

Our service

What our independent review services include

At Thryv Accountants, we understand how important it is to have a clear and comprehensive understanding of your company’s financial statements. Independent reviews are one of the best ways for you as a business owner, to streamline your finances, identify any abnormalities in your business procedures, and provide far-reaching benefits during the tax season and when seeking investors for your business.

Our independent review services include:

definition

What is an independent review?

An independent review is a process where the independent reviewer provides “Limited Assurance” on a set of annual financial statements.

An independent review is required for most companies in South Africa which are not owner-managed. In all but the smallest companies, a Registered Auditor is required to perform the review.

The new Companies Act, No. 71 of 2008 established independent reviews. They mandate that the yearly financial accounts of certain businesses be independently examined on an annual basis.

We examine supporting papers to ensure that assets and liabilities match the financial statements after the fiscal year. We also use analytical techniques to analyse the company’s financial statements. Experts at Thryv Accountants then report on any differences and follow up on them.

For smaller businesses, independent reviews are utilised in between audits or instead of audits. They are faster and less expensive when employing an independent accounting company for a review. It is a more accessible and cheap choice for many smaller businesses (but it is not a substitute for audits if needed by laws and company law rules).

Summary of independent review services

A type of assurance engagement in which an independent reviewer gives limited assurance on a set of yearly financial statements.

What is limited assurance?

Limited assurance is the statement/document made by an auditor that states they are not aware of any modifications or discrepancies in the financial statements of a company, and that what was reported is correct.

Independent review vs audits: What's the difference?

An audit is not the same as an independent review. An independent review serves to give limited assurance, whereas an audit is intended to provide a higher level of assurance. They are less extensive than an audit, require less detail, and hence cost less to complete.

An independent review gives limited confidence, but an audit provides reasonable certainty that the financial statements are presented fairly and without substantial errors.

The key differences between an audit and an independent review are the costs involved, the level of assurance given, and the details/depth of the financial statement analysis.

Reason

Why do you need an independent review in South Africa?

The primary goal of an independent review is to acquire limited assurance that no major changes should be made to the financial statements and that what was reported is correct.

An independent review adds credibility to your financial statements, especially when they are reviewed by outside parties, such as banks and investors.

Based on the provisions of the Companies Act, an independent review may be required for your company. Even if it is not required, it is strongly advised that most small and medium-sized organisations undertake an independent review.

The processes carried out during a review give all of the evidence necessary in an audit, such as the compilation of annual financial statements. The review processes are investigative and analytical, to gather enough relevant data to support a limited decision on whether the financial statements are prepared in conformity with the law.

Who needs an independent review in South Africa?

Independent reviews are not obligatory for owner-managed profit organisations and are optional if the public interest score is less than 350 and the financial statements are independently generated, or if the public interest score is less than 100.

Where a corporation is not owner-managed, an independent review is necessary. In general, the business is owner-managed if all shareholders are directors.

Essentially, if the company is not governed by all of the shareholders, or if the public interest score determines that the collapse of the business will have a major impact on the public, an independent review is required.

Private enterprises in South Africa will be allowed to replace yearly audits with independent reviews under the new Companies Act. Small businesses can choose the less rigorous and less expensive option of having their financial statements independently evaluated rather than the typical path of an audit.

The new Companies Act requires only public firms to be audited. The new legislation aims to simplify small and medium-sized company regulation, making it less expensive and more accessible to South African businesses.

When do you need an independent review?

After your financial statements and accounts have been put together, an independent review is carried out. Only once the independent Review has been completed may you file your annual tax return.

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What are the benefits and advantages of an independent review?

Independent review services In South Africa The benefits of outsourcing with Thryv Accountants

Thryv Accountants can help you through every step of the independent review process, from identifying your Public Interest Score to ensuring your company adheres to every compliance law and regulatory rule in your industry.

You can reach out to us to find out how you can start this process – drop us a message or reach out and schedule a call to discuss any questions or concerns you may have.

What our clients say

Client Reviews

Pete LowesPete Lowes
14:23 27 Feb 24
I agreed to work with someone called Conrad – and as soon as I signed, he ‘left the company’. Very strange, but I persevered, agreeing to pay for their top package for management accounts, payroll and basically all accountancy services. I now found myself with someone called Arnaud. Not for long, as I was swiftly palmed off to someone else.Over the last month, they’ve become really unhelpful, so we asked to leave. They’ve been charging us a registered representative fee for several months when their representative wasn’t registered at all. They’re completely ignoring this point and refusing to refund the months when no one was registered from Thryv on our behalf.They’re now trying to claw more cash from us to get the management accounts for months that we already paid for.Untrustworthy, unreliable and greedy. Don’t do it.
Sumehn SewrajSumehn Sewraj
21:31 18 Aug 23
Had the pleasure of working with the team for 5 months. Extremely professional and knowledgeable in all accounting aspects. 100% recommend!
Arnaud BrunelArnaud Brunel
18:46 18 Jun 23
I recently had the pleasure of engaging Thryv, an outstanding accounting firm based in Cape Town, and I cannot recommend their services enough! From start to finish, my experience with Thryv has been nothing short of exceptional.Their team of dedicated professionals possesses an impressive depth of knowledge and expertise in accounting. They effortlessly handle a wide range of financial matters with utmost precision and attention to detail. Whether it’s tax planning, bookkeeping, or financial statements, Thryv has consistently exceeded my expectations.The moment I reached out to Thryv, I was greeted with warmth and professionalism. The team listened attentively to my needs and tailored their services accordingly, providing personalized solutions that were tailored to my unique circumstances. Their willingness to go the extra mile truly sets them apart.What I appreciate most about Thryv is their unwavering commitment to delivering timely and accurate results. Deadlines are consistently met without compromising the quality of their work. They navigate complex financial regulations and tax laws with ease, ensuring compliance and peace of mind.Moreover, Thryv’s transparency and open communication foster a strong sense of trust. They take the time to explain intricate accounting concepts in a manner that is easily understandable, empowering clients to make informed decisions. It’s refreshing to work with a firm that values client education as much as they do.In addition to their exceptional service, Thryv’s location in Cape Town is an added bonus. Situated in one of the most vibrant cities in the world, their proximity to local businesses and industries gives them a unique understanding of the regional economic landscape. They are well-equipped to address the accounting needs specific to Cape Town-based businesses.In conclusion, I wholeheartedly recommend Thryv for all your accounting needs. Their professionalism, expertise, and commitment to client satisfaction make them the go-to choice in Cape Town. When it comes to financial matters, Thryv is the firm you can trust to navigate the complexities of the accounting world seamlessly.
Adele LokkerAdele Lokker
13:50 19 May 23
More than 5 stars! Thryv is a breath of fresh air. Their professionalism, expertise, and quick-response is what makes their service stand out. The best accounting firm in Cape Town!
Lee-Anne WebsterLee-Anne Webster
07:44 18 May 23
Excellent service. From the initial meeting to onboaridng everything was explained. Thank you to everyone at Thryv. Professional in every way
Tahn HendricksTahn Hendricks
12:50 13 Mar 23
Friendly, efficient and reliable service – I would give 10 stars if I could!
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