Independent Review

What is an Independent Review?

An independent review is a limited-assurance check of your financial statements by a registered practitioner. It’s designed to flag obvious errors or misstatements without the depth of a full audit.

Think of it like this…

It’s a “lite audit” for smaller companies — less intrusive, less expensive, still gives stakeholders comfort.

Why does it matter?

  • May be required depending on your Public Interest Score (PIS)
  • Provides credibility for banks, suppliers, and investors
  • Helps catch mistakes before SARS or stakeholders do

How is it different from an audit?

  • Audit: deeper testing, higher (reasonable) assurance, more costly
  • Independent review: fewer procedures, limited assurance, more affordable

When is it used?

Private companies and NPCs with a lower PIS often opt for an independent review instead of an audit, as allowed by the Companies Regulations.

Best practice

  • Check your PIS annually to confirm whether you need a review or an audit
  • Prepare clean accounting records and reconciliations to speed up the engagement
  • Keep your board resolution accepting the reviewed financials on file
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