QUESTION
What categories of companies are required to have their annual financial statements independently reviewed?

ANSWER
An independent review of a companys annual financial statements must be carried out in the following circumstances: (1) if a companys public interest score is at least 100 but less than 350 and the financial statements were independently compiled, or (2) if a companys public interest score is less than 100 but their financial statements are independently compiled, or (3) if a companys public interest score for the particular year is less than 100
QUESTION
What categories of companies are required to be audited according to the Companies Regulations 2011?

ANSWER
The Regulations state that the following companies must be audited: All public and state-owned companies; Any profit or non-profit company if they holds any assets in a fiduciary capacity in the ordinary course of business for any financial year exceeding R5 million; Any non-profit company incorporated by an organ of the state, a state-owned company, international entity, foreign entity; Any non-profit company performing a statutory or regulatory function; Any other company with a public interest score in that financial year which is 350 or between 100 and 350, if the financial statements were internally compiled (The calculation of the public interest score is explained in Regulation 26(2) of the Companies Regulations).

QUESTION
Does the Companies Amendment Act replace the Companies Act?

ANSWER
The Companies Amendment Act amends certain sections of the Companies Act and therefor the two Acts should be read together. The Regulations provides separate additional information regarding the implementation of the Act and should also be read when studying the Companies Act and Companies Amendment Act.

QUESTION
How will the Companies Act affect companies which financial year end occurs prior to 1 May 2011 but whose Annual Financial Statements will be signed after the Act has come into effect. I.e. whether a Company with a financial year-end of February 2011 must be audited if the Annual Financial Statements will only be signed after the new act has come into force?

ANSWER
The effective date of the Companies Act has been announced as 1 May 2011. This means that companies with year ends before that date will still require an audit as the 1973 Companies Act continues to govern them (even if the financial statements are only signed after 1 May 2011). If the year-end falls after 1 May 2011, then no audit would be required (assuming it falls into the "no audit" category in the new Act). In the Companies Amendment Act transitional provisions was included. The transitional provision state that if a companys year end was before 1 May 2011 then the requirements of the 1973 Act will apply for the publishing. Audit and approval of the annual financial statements. If the year end of a company is after 1 may 2011 then the requirements of the 2008 Companies Act will apply.