RSM South Africa

Assurance updates

Estimates and uncertainties in financial statements

14 August 2017
Users of financial statements are often surprised at the extent of estimation involved in the preparation of financial statements.  One would think that accounting is more of an art than a science and that the world of reporting consisted of measurables – prices, percentages, debits, credits, etc.   Sadly, that is not the case anymore.  As business has become more

New accounting and audit requirements for Bodies Corporate

21 July 2017
Previously, only Sectional Title Schemes with ten or more units were required to have their annual financial statements audited.

NOCLAR - Not just for auditors

12 July 2017
Auditors, especially in South Africa with its “Reportable irregularities” requirements, are painfully aware of their duties to report irregularities. These duties are well defined in the Auditing Professions Act, International Standards on Auditing, etc.

Mandatory Audit Firm Rotation

3 March 2017
Independence is the cornerstone of the auditing profession.  Independence is just another, slightly stronger, word for objectivity. If an auditor is to add any value to the client, investors, lenders, the economy or even the world, he/she must be objective, or “independent” of the information and the entity being audited.

The effect of the new Auditor's Report on smaller entities

14 March 2016
The new auditor reporting requirements are not just going to affect the audits of listed entities. This article highlights some of the considerations for smaller entities in terms of the requirements applicable to all entities and those that may be applied on a voluntary basis.

Companies Act – business’ best friend or worst enemy?

15 October 2015
So many articles have been written on the Companies Act, 2008 starting years before its implementation in May 2011, and still continuing up to this day.  When our clients read these articles or consult with us on the “new” Act we are often asked what the purpose of all of this is and where all of this regulation is going. 

Ratification of Loans and financial assistance granted under Section 45 of the Companies Act No 71 of 2008

25 September 2015
Let’s start by looking at the provision of Section 45, as to who the section applies to. Section 45 of the Companies Act No 71 of 2008 applies to direct or indirect assistance to:

Review or Audit?

25 September 2015
Before 2008, all companies had to be audited – irrespective of size, shareholding, etc. The new (or actually not so new anymore) Companies Act 2008 is more flexible.

Financial assistance to group companies

25 September 2015
The new Companies Act, 2008 has introduced a few principles that are aimed at preventing abuse of corporate structures to the disadvantage of others.

Review or Audit

25 September 2015
The Companies Act 2008 brought at least two alternatives to the traditional audit: Firstly, some smaller companies have no requirement at all, leaving shareholders with the ability to choose their own level of assurance, if any. For others, the concept of an “independent review” of the financial statements has been introduced.