CAPS Grade 12
Chapter 1: Companies
Terminology B
Directors:
The board of directors is the body in which the company achieves its
goals. Directors must:
● Act in good faith in the best interest of the business
● Not use their position or information to cause harm or gain power
outside of the company
● Communicate and information or opportunity of advantage to the
business
● Act on the businesses behalf
● Be aware of the companies act
Auditors:
Chartered Accountants are the only authorised external auditors to
perform audits. Conducts formal audits on the financial statements to
present an unbiased and independent evaluation of the business.
Other Services:
● Ensures financial statements are free of error
● Written opinions to assess if free of material misstatements and
represents a true and fair view of the business.
● Bring fraud related information to the managers attention
● Review control procedures of issues raised by SARS.
Internal Auditors:
● Assurance of internal control to meet goals
● No opinion on financial statements- only to assess risks, monitor
control procedures and government procedures
Chapter 1: Companies
Terminology B
Directors:
The board of directors is the body in which the company achieves its
goals. Directors must:
● Act in good faith in the best interest of the business
● Not use their position or information to cause harm or gain power
outside of the company
● Communicate and information or opportunity of advantage to the
business
● Act on the businesses behalf
● Be aware of the companies act
Auditors:
Chartered Accountants are the only authorised external auditors to
perform audits. Conducts formal audits on the financial statements to
present an unbiased and independent evaluation of the business.
Other Services:
● Ensures financial statements are free of error
● Written opinions to assess if free of material misstatements and
represents a true and fair view of the business.
● Bring fraud related information to the managers attention
● Review control procedures of issues raised by SARS.
Internal Auditors:
● Assurance of internal control to meet goals
● No opinion on financial statements- only to assess risks, monitor
control procedures and government procedures
