Professional Documents
Culture Documents
12I Tax Allowance
12I Tax Allowance
12I Tax Allowance
Audit Letterhead
Markets to which the Project is selling and the sales if the Project is in operation;
(ii)
Innovative Processes;
(iii)
(iv)
Business Linkages.
We have initialled the accompanying Annual Progress Report and other schedules as set out on
pages [insert page numbers] for identification purposes only.
Procedures and Findings
The procedures performed by us and the corresponding findings thereon are set out in the table
below.
[Note to the auditor: Throughout the document the auditor is prompted to provide details of
documentation inspected. In all such instances the auditor must provide a sufficient level of
detail to enable reperformance of the procedures by the users of the report, and to ensure that
the readers understand the nature and extent of the procedures performed.]
Page 1 of 15
GENERAL PROCEDURES
Procedures
Findings
Obtain the Approval Letter (noting the name of the Company) and:
1. Agree it to the name of the Company The name of the Company reflected in the
documented in the Annual Progress Annual Progress Report [agrees / does not
Report.
agree] to that documented in the Approval
Letter dated [insert date].
[Provide details of exceptions]
If the Company has changed its name during the period covered by the Annual Progress
Report, obtain the Certificate of Change of Name and:
2. Agree it to the new name of the Company
documented in the Annual Progress
Report.
[NOTE: If the procedure is not applicable
then state that the procedure is not
applicable]
3. Agree the ownership structure for the
project information per the Annual
Progress Report to the relevant underlying
statutory records of the Company.
statutory
[Provide
details
inspected]
4. Agree the sources of finance for the
project information per the Annual
Progress Report to the relevant underlying
records of the Company (e.g. bank
statement or loan agreement).
of
records
were
documentation
underlying
[Provide
details
inspected]
5. Agree the location of project information
per the Annual Progress Report to relevant
documentation such as utility bill or lease
agreement.
of
records
were
documentation
Page 2 of 15
Procedures
Findings
inspected:
[Provide
details
inspected]
of
documentation
Findings
Obtain copies of the current years audited annual financial statements dated [insert date] and
prior years audited annual financial statements dated [insert date] and:
7. Agree the name of the Company reflected
in the current years audited annual
financial statements to the name of the
Company documented in the Annual
Progress Report.
11. Inspect the auditors report for the current The auditors report [contained / did not
year to note any modifications of the contain] an opinion that was modified (e.g.
Final Oct 2014
Page 3 of 15
Procedures
auditors opinion as well as of any
emphasis of matter paragraphs and
provide exact extracts of any modification
paragraphs
(including
emphasis
of
matters) to the auditors report.
Findings
qualified / adverse / disclaimer of opinion)
and / or emphasis of matter paragraph.
[Provide the exact extract
modification paragraph]
of
any
Findings
of
documentation
Page 4 of 15
Procedures
original application.
Findings
Letter dated [insert date]
application dated [insert date].
and
original
of
documentation
Findings
Inquire from management/directors and obtain a copy of the current years audited annual
financial statements dated [insert date] and relevant underlying accounting records and:
17. Inspect and inquire whether the Company Per discussion with [insert name and
has not received any concurrent industrial designation of person(s) discussed with] and
incentive in terms of section 12I(7)(a)(ii).
inspection of the audited annual financial
statements and relevant underlying accounting
records [provide details of other relevant
accounting records inspected], the Company
[is / is not] receiving concurrent industrial
incentive benefits in terms of section 12I (7)(a)
(ii) and / or [does / does not] constitute an
industrial participation project.
[Provide details of exceptions]
MANUFACTURING ASSETS
Procedures
Findings
18. Re-perform casts of the Total Assets No arithmetical errors were identified, except
Invested in the Project schedule as per for the following:
the Annual Progress Report.
[Provide details of exceptions]
Select a random sample of assets (including additions) invested in the project from the Annual
Progress Report (sample selection should include:
details
of
documentation
Page 5 of 15
Procedures
Findings
inspected]
of
documentation
of
documentation
Page 6 of 15
Procedures
Findings
The following relevant documentation was
inspected:
[Provide
details
inspected]
24. Enquire
and
inspect
relevant
documentation
(e.g.
invoices
and
contracts) to determine whether the assets
purchased are correctly disclosed as New
or Used assets.
of
documentation
of
documentation
of
documentation
Page 7 of 15
Procedures
Findings
will be brought into use and;
The following procedure is only applicable to the Annual Progress Report issued in the fourth
year after the date of approval:
29. Agree, through inspection of relevant
documentation [e.g. engineers report], that
more than 50% of manufacturing assets
have been brought into use within 4 years
from the date of approval as per the
Approval Letter.
of
documentation
Findings
Select a random sample of at least 50% in value of the SMMEs that have been contracted for
the project (included in the Annual Progress Report), and perform the following procedures:
30. Obtain a confirmation from the SMMEs of
their average number of full time
employees and annual turnover for the
period covered by the Annual Progress
Report and inspect that:
Page 8 of 15
Procedures
Findings
of
documentation
Findings
Obtain a schedule of full-time direct employees that have been employed as a result of the
project by the Company for the financial year of the Annual Progress Report:
33. Re-perform casts of the schedule.
of
documentation
Select a random sample of at least 50% of employees from the schedule obtained in procedures
33 and 34 above and perform the following procedures:
35. Inspect the contracts or letters of
employment between the Company and
Page 9 of 15
Procedures
the employee and agree that the date of
employment reflected in the letter(s)
occurs on or after the date of approval per
the Approval Letter.
Findings
fall on or after the approval date as per the
Approval Letter dated [insert date].
[Provide details of exceptions]
The following relevant documentation was
inspected:
[Provide
details
inspected]
of
documentation
of
documentation
SKILLS DEVELOPMENT
Procedures
Findings
Select a random sample of at least 50% of employees from the schedule obtained in procedures
33 and 34 above and perform the following procedures:
37. Agree the information related to skills
development per the Annual Progress
Report to the Companys latest skills
development plan and agree this
information to the Approval Letter and the
original application.
Findings
Page 10 of 15
Procedures
Findings
wages records were inspected:
[Provide
details
inspected]
of
documentation
Obtain a schedule of Expenditure on SAQA approved training as per the Annual Progress
Report and perform the following:
40. Re-perform casts of the schedule.
41. Agree the total expenditure amount per The total expenditure amount per the schedule
this schedule to the total expenditure [agrees / does not agree] to the Annual
amount per the Annual Progress Report.
Progress Report.
[Provide details of exceptions]
Select a random sample of at least 50% in cost of the training per the above schedule of
Expenditure on SAQA approved training and perform the following procedures:
42. Agree the amount per the original invoice
to the amount contained in the schedule
documentation
was
not]
documentation
[Provide
details
inspected]
44. Inspect the description of the training per
the original invoice, and / or other relevant
document where necessary, and inspect
that the training was accredited by the
SAQA.
of
of
documentation
Page 11 of 15
Procedures
Findings
of
documentation
48. Agree the total expenditure amount per The total expenditure amount per the schedule
this schedule to the total expenditure [agrees / does not agree] to the Annual
amount per the Annual Progress Report.
Progress Report.
[Provide details of exceptions]
Select a random sample of at least 50% in cost of the training per the above schedule of
Expenditure on equivalent training and perform the following:
49. Agree the amount per the original invoice
to the amount contained in the schedule.
Page 12 of 15
Procedures
Findings
The following invoices were inspected:
[Provide
details
inspected]
documentation
of
[Provide
details
inspected]
52. Inspect the names of the employees per
relevant training documentation (e.g.
attendance register) and agree the
individual employees to the schedule
obtained in procedures 33 and 34.
documentation
[Provide
details
inspected]
51. Inspect the description of the training per
the original invoice, and / or other relevant
document where necessary, and inspect
that the training was determined by the
adjudication committee to be equivalent to
training accredited by SAQA.
of
of
documentation
ALLOWANCE UTILISATION
Procedures
Findings
Page 13 of 15
Procedures
approved per the Approval letter.
Findings
dated [insert date].
[Provide details of exceptions]
56. Re-perform cast of the schedule of the net No calculation errors were identified, except
allowance available to the Company and for the following:
agree it to the amount reflected in the
[Provide details of exceptions]
Annual Progress Report.
The net allowance available [agrees / does not
agree] to the Annual Progress Report.
[Provide details of exceptions]
57. Re-perform casts of the allowance
utilisation schedule per the Annual
Progress Report.
Because the above procedures do not constitute an audit of financial information, a review of
financial information or other assurance engagement conducted in accordance with
International Standards on Auditing, International Standards on Review Engagements or
International Standards on Assurance Engagements other than Audits or Reviews of Historical
Financial Information, we do not express any assurance on the accompanying Annual Progress
Report.
Had we performed additional procedures or had we performed an audit or review, or other
assurance engagement in respect of the Annual Progress Report and other accompanying
schedules for the [year/period] ended [insert date], other matters might have come to our
attention that would have been reported to you.
Restriction on use and distribution
Our report is solely for the purpose set out in the first paragraph of this report and is restricted to
those parties that have agreed to the procedures being performed. This report relates only to
the items specified above and does not extend to any financial statements of the Company,
taken as a whole.
_________________________
[Firm Name / Name of Registered Auditor]
Per [Partner Name]
Partner
Final Oct 2014
Page 14 of 15
[Date]
Page 15 of 15