IRBA – INDEPENDENT REVIEWERS REPORT
Two examples of reports have been issued by the CFAS committee of IRBA for independent reviews as conducted in
terms of the Companies Act, 2008.
EXAMPLE 1
Independent review of annual financial statements
ISRE: 2400: Fair presentation financial reporting framework
Circumstances:
INDEPENDENT REVIEWER'S REPORT
To the Shareholders / Members (1) of EXAMPLE 1 Proprietary Limited
Report on the Financial Statements (2)
We have reviewed the annual financial statements of EXAMPLE 1 Proprietary Limited that comprise the statement of
financial position as at 31 December 20xx and the statement of comprehensive income, statement of changes in
equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and
other explanatory information, and the directors’ report, as set out on pages xx to xx.
Directors’ Responsibility for the Financial Statements
The company’s directors are responsible for the preparation and fair presentation of these financial statements in
accordance with International Financial Reporting Standards for Small and Medium-sized Entities (3) and the
requirements of the Companies Act of South Africa, and for such internal control as the directors determine
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
Independent Reviewer’s Responsibility
Our responsibility is to express a conclusion on the annual financial statements based on our review. We conducted
our review in accordance with International Standards on Review Engagements (ISRE) 2400, Engagements to
Review Historical Financial Statements. ISRE 2400 requires us to conclude whether anything has come to our
attention that causes us to believe that the financial statements, taken as a whole, are not prepared in all material
respects in accordance with the applicable financial reporting framework. This Standard also requires us to comply
with relevant ethical requirements.
A review of financial statements in accordance with ISRE 2400 consists primarily of making inquiries of management
and others within the entity involved in financial and accounting matters, applying analytical procedures, and
evaluating the sufficiency and appropriateness of evidence obtained.
A review also requires performance of additional procedures when the practitioner becomes aware of matters that
cause the practitioner to believe the financial statements as a whole may be materially misstated.
We believe that the evidence obtained in our review is sufficient and appropriate to provide a basis for our
conclusion.
The procedures performed in a review engagement are substantially less than those performed in an audit conducted
in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these
financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the annual financial statements do not present fairly, in all material respects the financial position of EXAMPLE 1 Proprietary Limited as at 31 December 20xx and its financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards for Small and Medium-sized Entities (4) and the requirements of the Companies Act of South Africa.
Emphasis of Matter
[Where applicable, an emphasis of matter paragraph is included that refers to a matter appropriately presented or
disclosed in the financial statements that, in the independent reviewer’s judgment is of such importance that it is
fundamental to users’ understanding of the financial statements.]
Other Matter
[Where applicable, a paragraph is included that refers to a matter other than those presented or disclosed in the
financial statements that, in the independent reviewer’s judgment is relevant to users’ understanding of the
independent review, the independent reviewer’s responsibilities or the independent reviewer’s report.]
Report on Other Legal and Regulatory Requirements
[Law or regulation may impose additional reporting responsibilities on the independent reviewer which have no effect
on the Report on the Financial Statements.] (5)
Independent Reviewer’s signature
Name of individual reviewer
Registered Auditor
Date
Registered Auditor’s address
Notes:
1. The appropriate use of “Shareholders” or “Members” is in accordance with the definitions contained in the
Companies Act, 2008 (as amended).
2. The subtitle “Report on the Financial Statements” is unnecessary in circumstances when the second subtitle
“Report on Other Legal and Regulatory Requirements” is not applicable.
3. May refer to South African Statements of Generally Accepted Accounting Practice or International Financial
Reporting Standards, as applicable.
4. Or refer to South African Statements of Generally Accepted Accounting Practice or International Financial
Reporting Standards, as applicable.
5. There is no requirement for an Independent Reviewer to include any disclosure in their “Report on Other Legal
and Regulatory Requirements” regarding a Reportable Irregularity reported to the CIPC in accordance with
Regulation 29(1)(b) and (6) to (11) to the Companies Act of South Africa. Regard should be had as to the
possible effect, if any, of any Reportable Irregularity on the Conclusion expressed.
------------------------------
Independent review of annual financial statements
ISRE 2400: Compliance financial reporting framework (basis of accounting)
Circumstances:
INDEPENDENT REVIEWER'S REPORT
To the Shareholders / Members (3) of EXAMPLE 2 Proprietary Limited
Report on the Financial Statements (4)
We have reviewed the annual financial statements of EXAMPLE 2 Proprietary Limited that comprise the statement of
financial position as at 31 December 20xx, and the statement of comprehensive income and statement of cash flows
for the year then ended, and a summary of significant accounting policies and other explanatory information, and the
directors’ report, as set out on pages xx to xx.
Directors’ Responsibility for the Financial Statements
The company’s directors are responsible for the preparation of these financial statements in accordance with the
basis of accounting described in note xx and the requirements of the Companies Act of South Africa, and for such
internal control as the directors determine necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Independent Reviewer’s Responsibility
Our responsibility is to express a conclusion on the annual financial statements based on our review. We conducted
our review in accordance with International Standards on Review Engagements (ISRE) 2400, Engagements to
Review Historical Financial Statements. ISRE 2400 requires us to conclude whether anything has come to our
attention that causes us to believe that the financial statements, taken as a whole, are not prepared in all material
respects in accordance with the applicable financial reporting framework. This Standard also requires us to comply
with relevant ethical requirements.
A review of financial statements in accordance with ISRE 2400 consists primarily of making inquiries of management
and others within the entity involved in financial and accounting matters, applying analytical procedures, and
evaluating the sufficiency and appropriateness of evidence obtained.
A review also requires performance of additional procedures when the practitioner becomes aware of matters that
cause the practitioner to believe the financial statements as a whole may be materially misstated.
We believe that the evidence obtained in our review is sufficient and appropriate to provide a basis for our
conclusion.
The procedures performed in a review engagement are substantially less than those performed in an audit conducted
in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these
financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the annual financial statements
are not prepared, in all material respects, in accordance with the basis of accounting described in note xx, and the
requirements of the Companies Act of South Africa.
Emphasis of Matter
[Where applicable, an emphasis of matter paragraph is included that refers to a matter appropriately presented or
disclosed in the financial statements that, in the independent reviewer’s judgment is of such importance that it is
fundamental to users’ understanding of the financial statements.]
Other Matter
[Where applicable, a paragraph is included that refers to a matter other than those presented or disclosed in the
financial statements that, in the independent reviewer’s judgment is relevant to users’ understanding of the
independent review, the independent reviewer’s responsibilities or the independent reviewer’s report.]
Report on Other Legal and Regulatory Requirements
[Law or regulation may impose additional reporting responsibilities on the independent reviewer which have no effect
on the Report on the Financial Statements.] (5)
Independent Reviewer’s signature
Name of individual reviewer
Registered Auditor
Date
Registered Auditor’s address
Notes:
1. The financial statements are distributed to a wide range of users (e.g. Shareholders, Bank and SARS).
2. To the intended users of the financial statements.
3. The appropriate use of “Shareholders” or “Members” is in accordance with the definitions contained in the
Companies Act, 2008 (as amended).
4. The subtitle “Report on the Financial Statements” is unnecessary in circumstances when the second subtitle
“Report on Other Legal and Regulatory Requirements” is not applicable.
5. There is no requirement for an Independent Reviewer to include any disclosure in their “Report on Other Legal
and Regulatory Requirements” regarding a Reportable Irregularity reported to the CIPC in accordance with
Regulation 29(1)(b) and (6) to (11) to the Companies Act of South Africa. Regard should be had as to the
possible effect, if any, of any Reportable Irregularity on the Conclusion expressed.
