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
