1. Companies Amendment Bill, 2010 Presented by: Stiaan Klue

2. Background on SAIBA  Institute is one of eight professional bodies “accredited” by the DTI to perform the accounting officer function.  Other legislation: 1.Sectional Titles Act 1986; 2.South African Schools Act 1996; 3.Non Profit Organisations Act 1997; and 4.National Credit Act 2005.  Upholding high professional standards for members.  Code of conduct, disciplinary committee, Members Handbook.

3. Introduction  Thank you for the opportunity to comment.  Congratulations to DTI on their work to reform Company law.  Major project with challenges but we need to push forward.  We are confident that CIPRO can implement on 1 April 2011.

4. Specific Comment (1)  We support the amendments proposed to Section 1 of the Companies Act: ‘ ‘‘audit’ has the meaning set out in the Auditing Profession Act, but does not include an ‘independent review’ of annual financial statements, as contemplated in section 30(2)(b)(ii)(bb);…” [emphasis added]  We also support to the insertion of a new section 30(8): ‘‘(8) Despite section 1 of the Auditing Profession Act, an independent review of a company’s annual financial statements required by this section does not constitute an audit within the meaning of that Act.’’. [emphasis added]

5. Specific Comment (2)  Reasons we support the amendment: 1.Emulate international best practices. 2.Simplifying and reducing the cost of formation and maintenance of the legal entity.

6. Specific Comment (3)  Challenges with the current accounting officer regime: 1.No standard. 2.Varying academic and practical requirements.  Benefits of the Independent Review regime: 1.Set the standard (ISRE 2400). 2.Adherence to IFAC International Education Standards to address lack of qualification requirements.

7. Conclusion  Distinguishing the independent review from audit is a major step in right direction.  Accounting officers perfectly positioned to fulfil this role.  Standard can be aligned by requiring additional occupational certificate course in Independent Review.