Independent Reviews: The Companies Act 71 of 2008 stipulates that certain entities are required to have Independent Reviews of their financials in accordance with ISRE 2400. An Independent Review is an alternative assurance engagement where the independent reviewer provides limited assurance on a set of financial statements when compared to that of the reasonable assurance provided by the external auditor.

Who must have an Independent Review:

1. 1. Public Companies: Public companies are required to have an independent review of their financial statements if they meet certain criteria outlined in the Companies Act of South Africa. Generally, if a company meets the requirements for a "public interest score" as defined in the Act, they must undergo an independent review of their financial statements.

   
   

2. 2. Certain Non-Profit Organizations: Non-profit organizations that meet certain thresholds may also be required to have an independent review of their financial statements. This requirement is outlined in the Companies Act and applies to certain types of non-profit entities.

   
   

3. 3. Other Regulated Entities: Certain regulated entities in sectors such as banking, insurance, and securities may also be required to undergo independent reviews as part of their regulatory compliance obligations. These requirements are typically imposed by sector-specific regulators.

   
   

4. What is the Cost of an Independent Review? The cost of an independent review in South Africa can vary depending on several factors, including the size and complexity of the entity's financial statements, the level of assurance required, the reputation and experience of the accounting firm or auditor performing the review, and any additional services or requirements specified by the client.

   
   

5. As of my last update, there isn't a fixed or standardized fee for an independent review under ISRE 2400 (International Standard on Review Engagements) in South Africa. However, accounting firms typically determine their fees based on factors such as:

   
   

6. Size and Complexity of the Entity: Larger and more complex entities may require more time and resources to conduct the review, leading to higher fees.

   
   

7. Scope of Work: The extent of the review engagement, including the level of assurance required and any additional procedures beyond the standard review, can influence the cost.

   
   

8. Experience and Reputation of the Firm: Established firms with a strong reputation may command higher fees due to their expertise and track record in conducting independent reviews.

   
   

9. Regulatory Compliance: Compliance with regulatory requirements and adherence to auditing standards may require additional effort, potentially affecting the cost.

   
   

10. Geographical Location: Fees may vary based on the location of the accounting firm and prevailing market rates in that region.

    
    

11. Additional Services: If the client requests additional services or assistance with financial reporting, compliance, or other matters, this can impact the overall fee.

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