The main objective of an Independent Review is to obtain limited assurance that there is no material modification that should be made to the financial statements.
This type of document is often prepared for privately held companies because of requirements of outside third parties (such as banks, creditors and potential purchasers) that are looking for comfort that the financial statements are not materially misstated.
Benefits of Independent Reviews
The benefit of an Independent Review instead of an audit is a substantial reduction in fees and management preparation time, as review requirements are far less onerous and rigorous. An independent review can also be expected to take less time than an audit, which means less of your staff time is taken up.
Independent reviews do not need to be conducted by registered auditors and an individual CA(SA) may be appointed to complete this process.