Emanating from the new Companies Act, the Independent Review provides an alternative to the traditional audit for companies that do not require a mandatory audit in terms of the Companies Act. An Independent Review is a review of annual financial statements that is aimed at entities (like privately owned companies, close corporations and NPOs) that do not require a traditional audit.
An Independent Review provides limited assurance as to the fair presentation of financial statements and is aligned to the standards of reporting issued by the international Federation of Accountants (IFAC).
It does not include detailed testing of the financial statements and cannot be used to detect errors or fraudulent figures. The Independent Reviewer will not be expressing his opinion of the financial statements.