Flashcards
Public Interest Score
Cards in this deck (4)
- 1The Public Interest- Society & businesses are interlinked
- No business=no society
- No society = no business
- It is in the public interest that there be a method of checking the credibility of info
- This method is auditing - provides an independent assurance - 2Public Interest Score- All companies and CCs must calculate their PIS for each Fin year
- Calculated by the sum of:
1. one point for each employee for the year
2. one point for every R1million in turnover
3. one point for every R1million of 3rd party liability
4. one point for each person direct/indirect have beneficial interest in the company
- Also take into account if statements were compiled internally/independantly - 3Public Interest Score Decision Tree- PIS > 350 = Audit
- PIS 100><349 = Audit (internally compiled)/IR(externally compiled)
PIS < 100 = IR - 4Companies Act make it obligatory to have AFS audited for:- Public Companies
- State owned companies
- Companies which hold assets > R5 million in a fiduciary capacity for the fin year