AUE2601
Assignment 2A Semester 2 2024
Detailed Solutions, References & Explanations
Unique number:
Due Date: 18 September 2024
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.
Terms of use
By making use of this document you agree to:
• Use this document as a guide for learning, comparison and reference purpose,
• Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
• Fully accept the consequences should you plagiarise or misuse this document.
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.