Page 19 - Profmark BSA Guide 2025

ASSURANCE LEVELS AND THE PUBLIC INTEREST SCORE (PIS)

The PIS is intended to reflect how much responsibility the company (including a CC
and NPC), has towards the public and determines whether the company will need a
financial audit, independent review or nothing at all. Every company must calculate its
public interest score for each financial year, and is required to disclose the same each
year on its CIPC annual return.
A company’s PIS is calculated using a standard formula based on the average number
of employees during the financial year, the total third party liability at the financial
year end, total turnover during the financial year, and the total number of individuals
with a direct or indirect beneficial interest in the company e.g. shareholders.
If the company has a Public interest Score:
Over 350
The company will need an audit. This applies even where the company is owner
managed, non-owner managed, or is a CC or NPC.
Between 100 and 349
The company will need an independent review where the financial statements are
independently compiled (externally), and it is not owner-managed – to be conducted
by a registered auditor or a chartered accountant. The company will need an audit
where the financial statements are internally compiled (applies even where the
company is owner managed, non-owner managed, or is a CC or NPC). The company
will not need an audit, or independent review where the financial statements are
independently compiled (externally), and it is owner-managed.
Lower than 100
Independent review required where it is not an owner-managed company. In all other
cases, there is no requirement for an independent review or an audit for owner-
managed companies, or NPC’s, unless required by the company’s MOI, or if a board
or shareholder resolution has been passed, opting for a voluntary audit.

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