Owner managed | Non-owner managed:

Owner managed is where the shareholders are also the directors of the company. These directors are involved in the day-to-day running of the business and has an obligation to act in the best interests of the company. Non-owner managed is where some of the shareholders are not directors of the company.

Independently compiled | Internally compiled:

Independently compiled means an external professional accountant prepared the company's financial statements on the basis of financial records provided by the company. Internally compiled means the business owner / company accountant / employee prepared the company's financial statements. Independently compiled financial statements are subject to less risk of misstatement as the professional accountant usually belongs to a regulatory body (SAICA / SAIPA) and he/she has no personal interest in the company.

Choosing The Right Engagement Can Save You Money And Time

The different types of engagement offer different levels of assurance to the users of the financial statements:

Compilation: Basic level of assurance

Independent review: Limited level of assurance

Audit: Highest level of assurance

Each engagement costs will be determined by the amount of time and work that will have to be performed by a professional accountant. The costs will be higher for a company that requires an audit than for a company that only needs compiled financial statements.

* OnAccounting does not accept any responsibility or liability for the use of the calculator or for any actions taken based on the results provided thereby. It remains the ultimate responsibility of the user to independently verify the outcome of the score prior to making any decisions based thereon.