Page 18 - Profmark BSA Guide 2025

Regulation 28: Categories of Companies Required to be Audited in Terms of
the Companies Act
Unless exempted in terms of Section 30(2A), the following categories of companies
are required to have an audit, conducted by a registered auditor:
■ A public company (listed and unlisted).
■ State owned companies (SOC Ltd).
■ Any profit or non-profit company, if, in the ordinary course of its primary activities
holds assets in a fiduciary capacity for persons who are not related to the
company and the aggregate value of such assets held at any time during the
financial year exceeds R5 million.
■ Any non-profit company, if it meets the requirements test as per the Regulations
of the Act (incorporated by or for the State).
■ Any other company whose public interest score, for the particular financial year as
calculated in accordance with Regulation 26(2) is:
■ 350 or more, or
■ at least 100, if its annual financial statements for that year were
internally compiled.
AFS of private companies and personal liability companies may also be audited if
required by that company’s MOI, or by a shareholder’s or director’s resolution, or in
terms of an agreement.
S30(2A) of the Amendment Act: Exemption of Owner-Managed Companies
If, with respect to a particular company, every person who is a holder of, or has a
beneficial interest in, any securities issued by that company is also a director of the
company, that company is exempt from the requirements in this section to have its
AFS audited or independently reviewed.
This exemption does not apply to the company if it falls into a class of company that
is required to have its AFS audited (Regulation 28), nor does it relieve the company
of any requirement to have its AFS audited or reviewed in terms of another law or in
terms of any agreement to which the company is a party.

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