NELSPRUIT - Much confusion has been caused by the new simplified accounting procedures for small, medium and owner-managed businesses. Questions have been raised with concern over new regulations concerning auditing, reviews and tax submissions.
The monthly Lowveld Chamber of Business and Tourism (LCBT) focused on clearing these issues up with the help of Pricewater-houseCoopers (PwC). Over 100 delegates attended the breakfast where Mr Pierrie Cronje gave a presentation aimed at clarifying these issues. 
The presentation was well received by the attendees. As PwC's resident partner in charge, Cronje gave a brief overview of the draft Companies Act Regulations and how these regulations may impact the various businesses.
In layman's terms, "Who still needs to be audited and who not?" If the company is a public company (Ltd) or state-owned entity, the entity will still be required to have an audit performed. If it is a private company ((Pty) Ltd), personal liability company (Inc) or a non-profit company (NPO), and hold assets in a fiduciary capacity, an audit will still be required. However, if it is a (Pty) Ltd, Inc or a NPO and none of the above applies, it will only be subject to an independent review. The size of the entity, such as total assets or turnover, will determine the level of review procedures needed.
The various accounting frameworks included in the regulations were also explained by Cronje as well as how they may impact on the various categories of business as set out in these regulations. These accounting frameworks varied from the international financial reporting framework (IFRS), international financial reporting framework for small- and medium-sized entities (IFRS for SME), and the draft version of "Micro GAAP". The small-, medium- and owner managed enterprises will revert back to the old method of "cost accounting" - accounting as we used to know it. This will result in a more simplified method of financial reporting. In other words, no more "fair valuations" and other complex accounting standards are applicable.
Many left all the more clearer on issues of auditing and reviews for SMMEs.
Should you not have been at the breakfast and are labouring under the same confusion with regards to the new accounting standards,  you can contact Cronje on 013-754-3300 for more information.