Accounting and Public Interest Score Analysis

Question 1

• Cartelli Civils (Pty) Ltd needs to provide auditors with their public interest score for their 2024 financial year
• Turnover: R 136 000 000
• Net profit: R 24 000 000
• Ordinary share capital: R 100 000 000
• Shareholders with direct interest: 5
• Average number of employees: 3 255
• Third party liabilities: R 62 740 000
• Public interest score: 3 559

Question 2

• HUT (Pty) Ltd needs an independent accounting professional to assist with financial statements
• An independent accounting professional is: Jack and Jill Accountants and Auditors, registered with SAICA and IRBA, suggested by a regular customer
• Other options are not independent due to conflicts of interest.

Question 3

• Badger Co (Pty) Ltd is a subsidiary of Bender Ltd, listed on the JSE
• Badger Co has a public interest score of 85
• Badger Co compiles financial statements internally
• Badger Co must have its financial statements audited

Question 4

• Stark (Pty) Ltd's public interest score is 62
• 100% shares are held by one shareholder
• The shareholder is the director
• Stark independently compiles its financial statements
• No audit required

Question 5

• Ted, financial manager of Congo Corp (Pty) Ltd, needs to assess audit requirements
• Turnover: R 170 million
• Total liabilities: R 35 million
• Shareholders: 10
• Employees start: 150, end: 94
• No fiduciary assets
• If Ted prepares the financials, the company only needs a review by a registered auditor

Question 6

• Sally is performing an independent review on a client
• Client's VAT201 returns materially misstated for lower VAT
• Sally must report the misstatement as a reportable irregularity to the commission without delay
• Sally must provide information on the misstatement

Question 7

• Adam Al (Pty) Ltd, a public company, needs to appoint a social and ethics committee
• Adam Al's public interest score is 520 for two consecutive years
• Adam Al must appoint the committee within one year after reaching the 500-point requirement
• Committee must have members be non-executive directors

Question 8

• A list of entities related to the client is being compiled
• Frog Tree IT (Pty) Ltd, IT consultants, 100% owned by the client's managing director's stepson
• This is a related party

Question 9

• Ronin Enterprises needs solvency and liquidity testing
• Total assets: R 370 million
• Total liabilities: R 148 million
• Ronin Enterprises will comply with the companies act regarding dividend distribution

Question 10

• Requirements for a company to be classified as personal liability
• Company's MOI must include that the directors are jointly and severally liable for company debts

Question 11

• Frank Castle wants to register a VIP security company
• Company names cannot include certain phrases, such as "Defense Force"
• "Castle Security (Pty) Ltd" is allowed

Question 12

• Charles applied to register a non-profit company, Xavier School for the Gifted NPC
• Section 13 of the Companies Act requires non-profit companies to be incorporated by three or more persons
• Application rejected due to this requirement

Question 13

• Casablanca (Pty) Ltd included requirement for annual audit in its Memorandum of Incorporation
• The companies act does not mandate this
• Casablanca must adhere to provision in the MOI

Question 14

• Kody Inc. is a personal liability company that has been liquidated
• In terms of the Companies Act, the directors and past directors are jointly and severally liable for company debts
• This liability is not dependent on a clause in the MOI

Question 15

• Commission believes that High-Table Trading (Pty) Ltd is trading recklessly
• The company has 20 days to satisfy the commission

Question 16

• Stig (Pty) Ltd keeps accounting records electronically and shreds paper copies after two years
• Stig (Pty) Ltd is not in contravention of the companies act
• The companies act allows electronic copies to be kept for more than two years

Question 17

• Mr. Pierce, shareholder in Amped Ltd, wants to review company meeting minutes
• Amped Ltd is obliged to provide the requested information
• Mr. Pierce holds beneficial interest in the company

Question 18

• Small Plant Hire (Pty) Ltd has not kept an asset register for several years
• Small Plant Hire (Pty) Ltd is in contravention of Section 28 of the Companies Act
• The Companies Act requires accurate and complete accounting records to be kept

Question 19

• The requirement for financial statements provided to any person is to fairly present the state and affairs

Question 20

• Spektree (Pty) Ltd, financial year end is 28 February 2024
• Financial statements should be prepared by 31 August 2024

Question 21

• Bluebird Couriers Ltd provided remuneration to directors
• The total value that must be included in the financial statements is R 18 158 000.00

Question 22

• Company name followed by (RF) indicates restrictions of trade

Question 23

• Eszray (Pty) Ltd needs to fulfil requirements before granting a loan
• The board requires a special resolution
• The loan must be granted and paid within two years.

Question 24

• Liquid Veg (Pty) Ltd must pay declared dividends
• Dividends are due within 120 days

Question 25

• Boabab Ltd is sending out notice of annual general meeting
• A copy of the annual financial statements should be included

Question 26

• Rock Lee Ltd needs a quorum for shareholders' meeting
• 5 shareholders needs to be present for the meeting

Question 27

• Shareholders in Donald Ltd want to amend MOI
• A special resolution is needed to amend the MOI

Question 28

• Ineligible or disqualified from being a director
• Shareholders cannot be directors of their own company

Question 29

• Aurelia, director of Pompei Excavators (Pty) Ltd has a financial interest in Young Milo (Pty) Ltd
• Aurelia must disclose her interest

Question 30

• Abu, CEO of Diamond in the Rough, has been informed that his brother, a director, may be involved in fraudulent activities
• Abu is obligated to report the information to the board, as soon as possible