CMV Group – Accountants & Legal Consulting

An independent review is the latest addition to the Companies Act and provides limited assurance. An accounting professional may review a business’s financial statements via particular enquiries with the aim of simply determining that no financial errors or miscalculations have occurred.

An independent review was established with the new Companies Act, No. 71 of 2008 in order to keep up with international trends and changes. An independent reviewer will give limited assurance that they have no reason to believe that the Annual Financial Statements are not free of material misstatements.

Limited assurance is the limited confidence the reviewer has in their findings, after exercising professional and due care, that they have no reason to believe that there are material misstatements in the Annual Financial Statements.

A material misstatement is any error or omission in the Annual Financial Statements that is material enough to affect the shareholders, investors, or any other user’s opinion or action towards the company.

The level of assurance given by the reviewer is lower than that given by an auditor. The amount of work done is less and the cost thereof is also less.

An independent review will basically confirm assets and liabilities at year-end with supporting documents and will do an analytical review of the income statement and following up on any discrepancies or risks of material misstatements.

Contact Us

Please contact us at info@cmv.co.za if you need assistance with an independent review.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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