Contact Center Industry News

TMCNet:  Small firms shun reviews as banks want audits [Bizcommunity (South Africa)]

[May 13, 2014]

Small firms shun reviews as banks want audits [Bizcommunity (South Africa)]

(Bizcommunity (South Africa) Via Acquire Media NewsEdge) Small firms have not taken up independent reviews as much as expected two years after the Companies Act allowed them to use this cheaper option in place of an audit of their financial statements, because banks favour audits.

This was the conclusion by accounting professionals interviewed last week.

Vested interests of the accounting and auditing profession, and the impression that the independent review does not offer the same credibility and assurance as the traditional audit, were some of the reasons attributed to the lack of uptake.

The amended Companies Act became effective in May 2011 and offered the opportunity for small- and medium-sized entities to have an independent review.

The main consideration in opting for an independent review has been the possibility of a reduction in the cost of doing business, but according to the South African Institute of Business Accountants (Saiba) Chief Executive Nicolaas van Wyk, this was not the case.

Van Wyk said there was a big difference between the amount of work done for an audit and the work done for an independent review. As a result, the assumption is that an independent review should be considerably cheaper, but in practice this was not the case.

Faith Ngwenya, Technical Executive at the South African Institute of Professional Accountants (Saipa) said some financial institutions still required audited financial statements even if a company was below the audit threshold.

"Perceptions of the standing of the independent review in the market remained a challenge," said Ngwenya. "It is the devil that nobody knows, and as a result you will find that banks, for example, will still insist on having audited financial statements, even if the entity is below the audit threshold.

"There is still the perception that an audit is better than an independent review. Once everyone gets used to the independent review, and it has gained a standing in the market that it offers sufficient assurance, then one will see a reduction in the perception," she said.

Van Wyk said the use of independent reviews would increase with better understanding by the markets of the value of such a review.

Source: Business Day via I-Net Bridge All rights reserved.

(c) 2014 Provided by SyndiGate Media Inc. (

[ Back To Cloud Contact Center's Homepage ]


Featured Resources

Featured Report
Millennial Research on Customer Service Expectations

Millennial Research on Customer Service Expectations

The "why" behind this research is simple: our clients recognize that different generations bring different expectations, varied communication preferences and new customer service patterns to the customer experience...
Featured Report
Optimizing the Customer Experience through Cloud Contact Centers

Optimizing the Customer Experience through Cloud Contact Centers

Adoption of cloud contact centers is on the rise. Findings from Aberdeen's January 2014 'Public Cloud vs. On-Premise: How to More Effectively Deploy a Cloud Center' study shows that 31% of contact centers are deployed in the cloud, and our related blog post highlights that companies anticipate their adoption of cloud technology to rise further throughout 2014...
Featured Report
Aberdeen report

Aberdeen Report: Cloud for Mid-Sized Contact Centers – What You Must Know

Cloud Technology is opening new doors for many businesses. However, it does so only when it's combined with the use of best practices and key technology enablers. This document highlights the adoption of cloud technology by mid-size contact centers and illustrates the reasons driving their investments...
Featured Whitepaper
Aberdeen report

Seven Critical Capabilities to Demand From Your Cloud Contact Center Provider

To deliver a world-class customer experience, your contact center must be flexible and reliable, while providing all the tools agents and supervisors need to manage their workflows. Here are seven critical capabilities to look for when deploying a contact center in the cloud...
Featured Webinar

Contact Center Economics and the Cloud

Together, Bob and Drew will help you understand the economic value of upgrading technology, important business and financial considerations, and how to compare total cost of ownership of a premises vs. cloud or hosted solution. Watch the webinar on-demand now...
Featured Datasheet
Zipwire Cloud Contact Center

Zipwire Cloud Contact Center

The appeal of moving services to the cloud is obvious. Cloud services offer reliability and robust feature sets without the need to implement or maintain complex contact center infrastructure. The Zipwire™ cloud-based contact center allows businesses to leverage the flexibility and cost savings of cloud architecture while offering a seamless, first-class customer experience...