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Address:

Phoenix Accounting Solutions


Chartered Accountants (SA)

Contact No.

Practice Number 30680497

4 Edmund Road
Constantia Kloof
Florida
1709
079 878 5903
072 477 2945

www.phoenixaccounting.co.za

DIFFERENCES BETWEEN AN AUDIT AND AN INDEPENDENT REVIEW


Audit

Independent Review

Level of assurance

High reasonable

Limited - moderate

Subject matter of report

Financial Statements

Financial Statements

Nature of assurance

Reasonable assurance:
Opinion the financial
statements fairly present

Moderate assurance:
Negative assurance Nothing
came to our attention to
indicate

Distribution of report

No restriction

No restriction

Understanding of the entity

In-depth understanding to
identify risk of material
misstatement

Overall understanding to
identify material misstatement

Internal control

Evaluation of internal control


required

No requirements

Nature of procedures

Extensive and highly reliable

Primarily analytical procedures


and enquiries

Relative cost

Most expensive

Less expensive than audit

IFAC standards

International Standards on
Auditing

International Standards for


Review Engagements (ISRE
2400)

Registered practitioner
required to do audit/review

Registered auditor

For entities with a Public


Interest Score above 100:
Registered auditor or
member in good
standing of a
professional body that
has been accredited in
terms of Section 33 of
the Auditing
Professions Act
For entities with a Public
Interest Score less than 100:
Any person who
qualifies to act as an
accounting officer

Partners: Michelle Beukes (CA) SA & Hartmann Beukes (CA) SA

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Address:

Phoenix Accounting Solutions


Chartered Accountants (SA)

Contact No.

Practice Number 30680497

4 Edmund Road
Constantia Kloof
Florida
1709
079 878 5903
072 477 2945

www.phoenixaccounting.co.za

Professional liability

Can be sued if practitioner fails


the objective standard/test of
what the reasonable auditor
would have done

Can be sued if practitioner fails


the objective standard/test of
what the reasonable
independent reviewer would
have done

Section 46 of the Auditing


Professions Act limiting
liability to third parties
Liability protection

Regulation

Section 58(2) of Auditing


Professions Act application of
Apportionment of Damages Act
to practitioners contracts with
their clients

None

Independent Regulatory Board


for Auditors

Companies Intellectual Property


Commission

All public and state-owned


companies must be audited

Applicability

All other companies that pass


the public interest test; or
All companies opting for a
voluntary audit

All non-owner-managed
companies (where the
shareholders are not the same
as the directors) who fail the
public interest test and do not
opt for a voluntary audit

(Reference: SAICA Independent Review: Guide by Professor Steven Firer)

Partners: Michelle Beukes (CA) SA & Hartmann Beukes (CA) SA

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