The long awaited draft Companies Regulations 2010 were published on the 22 December 2009 for public comment and will become effective on the implementation date of the Companies Act 2008. The Regulations will directly affect auditors and accounting officers’ bottom line.

The Companies Act requires several different topics to be addressed by Regulation, including the manner, form and procedures on how to conduct an independent review of annual financial statements as well as the professional qualifications, if any, of persons who may conduct such reviews.

In brief the draft regulations determine that public companies and those private companies that are deemed to be of public interest are subject to an audit. Non owner managed companies are subject to an Independent Review. Owner managed companies are not required to obtain a report on their annual financial statements but may voluntary or by request from creditors adopt the Independent Review in their memorandum of incorporation.

However It is expected that the Independent Review may replace Accounting Officer reports in statutes other than only the Close Corporation Act.

According to the current draft regulations the Independent Review consist of three different types of reports. The application of the Independent Review will therefore be determined by thresholds related to turn over, assets and number of employees.

All three reports are based on standards as issued by the International Federation of Accountants (IFAC) and it is determined that only an Independent Accounting Professional may issue an Independent Review.

The introduction of the Independent Review addresses two shortcomings of the traditional accounting officer reports. It provides for a standardised qualifications framework for those that will issue Independent Reviews and standardises the process of issuing an Independent Review report.

Although the primary focus of the seminar will be to introduce Independent Review standards, other substantial issues arising under the Companies Regulations 2010 will also be addressed.

This seminar will present an overview of the proposed regulations to the Companies Act, 2008 with particular attention given to Independent Review standards. These relate to: ethics, quality control, and assurance and related services. The seminar will introduce the International Standard on Review Engagements (ISRE 2400), International Standard on Related Services: Agreed upon procedures (ISRS 4400), and International Standard on Related Services: Compilations (ISRS 4410). Duties and responsibilities of " Independent Accounting Professionals" will also be considered.

1. Overview of the Companies Act 2008 and the amendments to the Close Corporations Act 1984
2. Overview of the draft Companies Regulations 2010
3. Financial reporting obligations for all companies and close corporations in terms of the Companies Act 2008
4. How to obtain audit exemption of annual financial statements
5. The three types of Independent Review reports and when they apply (ISRE 2400. ISRS 4400, ISRS 4410)
6. The qualification requirements to become an "Independent Accounting Professional"
7. Rights and duties of the "Independent Accounting Professional"
8. Comparison between auditor, "Independent Accounting Professional" and accounting officer
9. Rights and duties of the preparer of the annual financial statements
10. Accounting Officers for Close Corporations - the way forward
11. Overview of the 7 statutes requiring an accounting officer report
12. Overview of the substantive issues related to the following:

• Company records
• Maintenance of record of directors;
• Procedures for requests for access to company information;
• General and specific requirements of the accounting records to be kept
• Financial Reporting Standards
• Categories of companies that are required to have their annual financial statements audited;
• The manner, form and procedures for the conduct of independent reviews of certain types of private companies
• Professional standards required for persons to conduct independent reviews
• Enhanced Accountability

Auditors and Accounting Officers, Small and medium practitioners, members of professional bodies not yet members of IFAC, all those that are involved with the preparation of and reporting on financial statements for private companies including bookkeepers, accountants, directors and members of companies and close corporations.

Nicolaas van Wyk, Professional Accountant (SA), MBA

Nicolaas van Wyk is the former Technical and Standards Executive of the South African Institute of Professional Accountants (SAIPA) and currently the technical support executive for ACCA South Africa. In addition to his current ACCA position, he also fulfil the position of Chief Director at the Centre for Independent Review www.sacir.org .

• ACCA, SAICA, SAIPA, SAIT, ICB, SAIBA, IAC members: R850
• Non-members: R950
• Trainees: R450

Attendance of this seminar will secure 4 hours CPD points at SAICA, SAIPA, ACCA, SAIBA, IAC and CIMA.