Exam (elaborations)
AUE2601 assignment 2 semester 2 2024 (Group A)
- Institution
- University Of South Africa (Unisa)
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AUE2601 ASSIGNMENT 2 SEMESTER 2 2024Unique Number:
DUE DATE: September 2024
GROUP A
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PREVIEW
Part A: Calculating the Public Interest Score and Need for Audit
1.1 Public Interest Score Calculation: The public interest score is calculated
according to Section 28 of the Companies Act, 71 of 2008. For Ball Sport (Pty) Ltd, we
need to consider the following components to calculate the score:
Number of shareholders: Each shareholder counts for 1 point. Ball Sport has 8
shareholders.
Number of employees: 1 point is allocated for each employee. Ball Sport has 71
employees.
Third-party liabilities: The total liabilities of the company are R6,388,000. For
every R1 million of third-party liability, 1 point is added, so Ball Sport gets
approximately 6.39 points for liabilities.
Turnover: Ball Sport has a turnover of R28,200,000. For every R1 million of
turnover, 1 point is added, so the company earns 28.2 points for turnover.
The total public interest score is the sum of all these points:
8 (shareholders) + 71 (employees) + 6.39 (liabilities) + 28.2 (turnover) = 113.59
points.
Conclusion: According to the Companies Act, if a company’s public interest score
exceeds 100, it is required to have its financial statements audited. Since Ball Sport’s
public interest score is 113.59, the company must undergo an audit.
Disclaimer
Extreme care has been used to create this document, however the contents are provided “as is”
without any representations or warranties, express or implied. The author assumes no liability as
a result of reliance and use of the contents of this document. This document is to be used for
comparison, research and reference purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or by any means.
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