Independent reviews : perceptions of Chartered Accountants (South Africa)

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Date

Authors

Odendaal, Elizabeth Margaretha
De Jager, Herman

Journal Title

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Volume Title

Publisher

Southern African Institute of Government Auditors

Abstract

The Companies Act of 2008 introduces the independent review of financial statements of certain non-public interest companies as an alternative to the conventional audit. The audit of financial statements can only be performed by a Registered Auditor and is currently still required for all companies. The objective of the study is to determine the perceptions of Chartered Accountants (South Africa) regarding independent reviews. A questionnaire was used in order to obtain the perceptions of Chartered Accountants (South Africa) regarding independent reviews. This questionnaire covered the nature of an independent review, determinants of audit exemption, performing an independent review, and practitioners deemed competent to perform an independent review. The study also evaluated whether Chartered Accountants (South Africa), who are not allowed to perform audits, do in fact qualify to perform independent reviews. The respondents confirm the need for a principle-based stand-alone set of independent review standards as this is likely to clarify the terminology and to enhance the quality of reviews. The study also reveals that Chartered Accountants (South Africa) meet the requirements to perform independent reviews. However, the Independent Regulatory Board for Auditors should oversee the regulation of Chartered Accountants (South Africa) performing independent reviews to ensure that independent reviews are also performed in the public interest.

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Keywords

Chartered Accountants (South Africa), Independent review standards, Draft Regulations to the Companies Act, Registered Government Auditors (RGA)

Sustainable Development Goals

Citation

Odendaal, EM & De Jager, H 2011, 'Independent reviews : perceptions of Chartered Accountants (South Africa)', Southern African Journal of Accountability and Auditing Research, vol. 12, pp. 25-36.