The financial statements of both public and private companies are subject to an annual audit under the Companies Act. Appointment as an auditor is reserved for persons registered with the Public Accountant's and Auditor's Board. These persons, with very few exceptions, are Chartered Accountants.

Close Corporations are not subject to a compulsory audit, but an accounting officer who is a member of one of the bodies recognised in terms of the Close Corporations Act, must be appointed to review the accounting policies and report on whether or not the financial statements agree with the accounting records. The Institute of Commercial and Financial Accountants of Southern Africa is one of the professional bodies whose members are recognised to act as accounting officers to Close Corporations.

ACCOUNTING RECORDS

All companies must keep accounting records in one of the official languages. At a minimum, these records must include: the assets and liability of the company; a fixed assets register, cash receipts and payments; details of goods purchased and sold; and annual stock-taking (inventory) statements. 

FINANCIAL STATEMENTS/STANDARDS

The directors of a company are responsible for the issuance of annual financial statements which must fairly present the state of affairs and profit or loss of the company, in conformity with generally accepted accounting practice. 

The financial statements must consist of, at a minimum: a balance sheet and notes; an income statement and notes; a directors' report; an auditors' report; and a cash flow statement.