It is a myth that Non-Profit Companies (NPCs) can choose whether or not to obtain some form of assurance in relation to their annual financial statements.

NPCs need independent reviews or audits conducted within six months of financial year end primarily because the Companies Act mandates this requirement. We believe that this is because unlike owner-managed businesses, NPCs have a broad range of stakeholders, including society, donors, and beneficiaries, who cannot always demand such reviews or audits themselves.


What are independent reviews and how do they differ from audits?

Metaphorically, an independent review is like assessing a garden by standing on the pathway and looking at it for weeds:

Metaphorically, an audit involves assessing a garden by wandering around it looking for weeds, and then partially digging it up to check roots:

Why may it be beneficial to engage an independent reviewer rather than an auditor?

While independent reviews are less comprehensive than audits, they offer a cost-effective way for smaller NPCs to comply with the law and assure stakeholders, especially if they don’t have the budget for a full audit. Note though that they must check the audit requirements of their Memorandum of Incorporation and their existing funders.

How can Ziyo help?

For organisations where we don’t perform any accounting, Ziyo can provide an independent review service. Please get in touch with us on ziyo@ziyo.co.za.