If you run a business in South Africa, you’ve probably heard about audits — and maybe even felt a little unsure about what they really involve. Don’t worry — you’re not alone.
Many business owners, especially those growing fast or working with external funders for the first time, start wondering: “What is a business audit?”, “Who actually needs one?”, and “How does it help my business?”
Let’s break it all down in plain English.
What Is a Business Audit?
A business audit is an independent review of your company’s financial records, systems, and internal processes. Its goal is to make sure your financial statements are accurate, complete, and in line with the law and accounting standards.
Think of it like a full-body check-up for your business finances — making sure nothing is being missed, hidden, or misreported.
What Are Audit Services?
Audit services are the professional services offered by audit firms or registered auditors. Depending on your business needs, industry, and legal status, you might require different types of audits. Here’s a breakdown:
- Statutory Audits: These are required by law if your business meets certain thresholds (like turnover or public interest score). They’re performed by independent auditors and follow strict auditing standards.
- Internal Audits: These are optional but highly valuable. They review your internal controls, systems, and processes to find areas for improvement or prevent fraud. They’re often done periodically as a proactive risk management tool.
- Forensic Audits: These are more investigative in nature. If fraud, theft, or financial misconduct is suspected, a forensic audit digs deeper into specific transactions or behaviors.
- IT Audits: These focus on your tech infrastructure — ensuring your data systems are secure, reliable, and support your financial operations properly.
- Special Purpose Audits: These include project audits, donor/grant audits, B-BBEE audits, or any situation where a third party (like a regulator or funder) requires assurance over a specific part of your business.
Who Can Audit a Company?
Only independent, registered auditors can conduct official statutory audits in South Africa. These professionals must be registered with the Independent Regulatory Board for Auditors (IRBA) and follow strict independence and ethics rules.
This means your internal accountant or bookkeeper can’t audit your company — the auditor must be external and objective.
When Must a Business Be Audited in South Africa?
Not all businesses need to be audited every year, but some must by law. In South Africa, your company is required to undergo a statutory audit if:
- Your Public Interest Score (PIS) is above 350;
- Your PIS is above 100 and your financial statements are not independently reviewed;
- You are a public company, state-owned enterprise, or a non-profit receiving significant public funding;
- You fall under specific industry or sector regulations that require audits (like financial services).
💡 What’s a PIS?
It’s a score based on your company’s size, turnover, number of employees, and level of public impact. Not sure what yours is? We can help you calculate it.
How Does Audit Help Businesses?
Audits aren’t just about ticking boxes. They provide real value to your business in several ways:
1. Boosts Credibility
Having audited financials gives your business credibility in the eyes of banks, investors, funders, and even suppliers. It shows you’re running a transparent and well-managed company.
2. Improves Internal Controls
An audit can uncover weaknesses in your financial systems, helping you tighten controls and avoid costly mistakes down the line.
3. Detects Fraud Early
Auditors are trained to spot signs of fraud or mismanagement. Catching these early can save your business from major financial damage.
4. Supports Better Decision-Making
With clean, accurate financials, you can make smarter, more confident decisions — from budgeting to expansion planning.
5. Helps You Prepare for Growth or Exit
Thinking of selling, bringing in investors, or applying for tenders? Having an audit trail makes your business more attractive and easier to evaluate.
Ready to Get Started?
At Zuva Financial Services, we offer trusted audit services tailored to your business size, sector, and compliance needs. Whether you’re just starting out, scaling fast, or looking for a new audit partner — we’ve got you.
