Chartered Insitute for Business Accountants (CIBA) members that have obtained the:

• Designation Business Accountant in Practice (SA) and the
• Certificate in Independent Review Engagements

may perform independent review engagements for certain types of companies.

CIBA and the South African Institute of Professional Accountants (SAIPA) have the same recognition level for performing independent review engagements. That is, reviews may be performed for companies:

• That are non-owner managed i.e. only some of the shareholders have been appointed as directors of the company
• That have a Public Interest Score (PIS) of less than 100 points

The Companies Act, 2008 (section 30(7)(b)) empowers the Minister to determine by way of regulation the accreditation of professions whose members may perform independent reviews for companies for which such reviews are mandatory.

Although the Companies Regulations, 2011 does not specifically provide for an accreditation model, regulation 29(12) does require that professional bodies should file an annual report with the Companies Commission.

According to this regulation every profession recognised by the Minister under section 60 of the Close Corporations Act, 1984 and whose members are entitled to perform an independent review as set out in sub-regulation (4) (b) (ii), must annually file a report with the Commission demonstrating that it:

• Has proper mechanisms for ensuring that its members participate in continuing professional development and achievement of professional competence
• Has mechanisms to ensure that its members are disciplined where appropriate
• Is, and is likely to continue to be, financially and operationally viable for the foreseeable future
• Keeps and maintains a proper register of its members
• Has in place appropriate programmes and structures to ensure that it is actively endeavouring to achieve the objective of being representative of all sectors of the South African population
• Meets any other requirements that may be determined by the Commission from time to time

The Auditing Profession Act 26 of 2005 sets out the statutory role and responsibilities of the Independent Regulatory Board of Auditors (IRBA). These responsibilities are restricted to audits and work that is undertaken in accordance with auditing standards by registered auditors. The task of the IRBA is to protect the public by regulating audits performed by registered auditors. An independent review is only required for companies that may be classified as non-owner managed and non-public interest. Section 30(8) clarifies that an independent review of a company’s annual financial statements required by this section does not constitute an audit within the meaning of the Act.

Independent reviewers and their professional bodies are not required to apply for accreditation with the IRBA in order to perform or monitor the performance of an independent review engagement.

CIBA has prepared a short guide to assist members performing review engagements.

All review engagements must be performed in terms of this guide and the International Standard on Review Engagements (ISRE 2400).

CIBA in collaboration with the South African Centre for Independent Review (SACIR) has created an online independent review resource. The resource consists of: provides access to:

• Independent review methodology
• Working papers
• Standards
• Codes

Click here to gain access