Page 19 - Nexia SAB&T Business in South Africa Guide 2024

ASSURANCE LEVELS AND THE PUBLIC INTEREST SCORE (PIS)

The PIS is intended to reflect how much responsibility the company (including
a CC and NPC), has towards the public and determines whether the company
will need a financial audit, independent review or nothing at all. Every company
must calculate its public interest score for each financial year, and is required to
disclose the same each year on its CIPC annual return.
A company’s PIS is calculated using a standard formula based on the average
number of employees during the financial year, the total third party liability at the
financial year end, total turnover during the financial year, and the total number
of individuals with a direct or indirect beneficial interest in the company e.g.
shareholders.
If the company has a Public interest Score:
Over 350
The company will need an audit. This applies even where the company is owner
managed, non-owner managed, or is a CC or NPC.
Between 100 and 349
The company will need an independent review where the financial statements
are independently compiled (externally), and it is not owner-managed – to be
conducted by a registered auditor or a chartered accountant. The company will
need an audit where the financial statements are internally compiled (applies
even where the company is owner managed, non-owner managed, or is a CC
or NPC). The company will not need an audit, or independent review where the
financial statements are independently compiled (externally), and it is owner-
managed.
Lower than 100
Independent review required where it is not an owner-managed company. In all
other cases, there is no requirement for an independent review or an audit for
owner-managed companies, or NPC’s, unless required by the company’s MOI,
or if a board or shareholder resolution has been passed, opting for a voluntary
audit.

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