Independent Reviews: Asking the Right Questions

Preview

This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.


When it comes to independent reviews, most practitioners know that the work is not an audit. Yet too often, reviews are treated as a “lite audit” or worse, a compliance exercise that ticks boxes but adds no value. ISRE 2400 (Revised) makes it clear: the backbone of a review engagement is enquiry and analytical procedures. Asking the right questions is not just technique, it is the practitioner’s strongest tool to uncover risks, protect themselves, and deliver real value to clients.

For accountants in South Africa, this is more than compliance. Independent reviews are a chance to step into the role of strengthening SMEs, building trust, and contributing to economic growth. To do that, you need to master the art of enquiry.

Why Enquiry Matters

Unlike an audit, a review provides limited assurance. The practitioner does not test every transaction or confirm balances with third parties. Instead, the focus is on asking management and staff questions and performing analytical procedures to see if the financial statements make sense.

The problem is that if your questions are weak, your conclusion will be weak. If you simply ask “Was anything unusual this year?” and write down the answer, you are not applying ISRE 2400 properly. Professional scepticism means you must probe, clarify, and when necessary ask for supporting evidence.

Principles of Asking the Right Questions

  1. Open-ended over closed. Do not ask “Did you change accounting policies?” Instead ask “What changes in accounting policies occurred this year, and how did they affect your results?”

  2. Link to risks and analytics. If revenue jumped 25 percent while costs stayed flat, dig deeper: “What drove the increase? Which contracts or customers contributed most? Can we see the supporting invoices?”

  3. Follow up until satisfied. If management says receivables are up because of “a big new client,” enquire further: “Have payments been received since year-end?”

  4. Document both question and answer. ISRE 2400 requires you to record not just the fact you asked, but what was answered and how you evaluated it.

Areas to Target in a Review

Your questions must cover the areas most prone to misstatement and regulatory risk.

  • Revenue recognition: Any unusual sales near year-end? Were delivery notes and invoices aligned?

  • Trade receivables: How were doubtful debts assessed? Have payments come in after year-end?

  • Inventory: Were counts performed? How are slow-moving items valued?

  • Liabilities and provisions: Any unrecorded obligations? How was the provision calculated?

  • Related parties: Were all transactions disclosed? Are prices at arm’s length?

  • Going concern: How has management assessed cash flow for the next 12 months?

  • Subsequent events: What significant events happened after year-end?

These are not audit procedures. They are targeted questions that, when asked with scepticism, can reveal whether the financial statements are plausible.

Turning Enquiry into Client Value

Here is where many practitioners miss the opportunity. A well-designed review engagement is not only about meeting statutory requirements. The insights you gain from enquiry can be turned into advisory services that clients will pay for.

For example, if your questions uncover weak debtor follow-ups, you can offer an accounts receivable management service. If you identify vague provisions, you can advise on better risk assessment. If you see governance blind spots, you can position yourself as the expert who keeps clients out of regulatory trouble.

Reviews are not just about avoiding penalties. They are a way to make your practice more valuable and profitable.

Common Pitfalls to Avoid

  • Superficial questions. Do not stop at management’s first answer.

  • Lack of follow-up. If an answer does not make sense, dig deeper or inspect supporting evidence.

  • Poor documentation. “Asked, answered” is not enough. Document the reasoning.

  • Overreliance on management. Scepticism means being willing to doubt.

Failing in these areas not only weakens your file but puts your professional liability at risk.

A Broader Purpose

Independent reviews are not an administrative burden. They are part of building transparent, trustworthy financial reporting in South Africa. When you ask the right questions, you do not just protect yourself and your client, you strengthen the SME sector, encourage investment, and contribute to job creation. That is the bigger picture.

Conclusion

Asking the right questions is the heart of ISRE 2400. Done well, it transforms independent reviews from a compliance task into a value-adding service. For practitioners, it is a way to charge more, protect clients from regulatory pain, and build a reputation as the trusted expert. More importantly, it reflects the higher mission of the profession: creating economic growth through integrity, transparency, and professional excellence.


October’s payroll tax deadline isn’t just another date on the calendar, it’s the make-or-break moment for compliance. Join us for a CPD on this topic here.

Payroll Taxes: Nail Your October Submission and Avoid Costly Mistakes
🗓 Date: 10 October 2025
🕘 Time: 09:00 – 12:00
📍 Live Event | 3 CPD Units (Taxation)

Payroll tax submissions are a non-negotiable—and October’s deadline is one you can’t afford to get wrong. This session gives you the tools, updates, and strategies to ensure your submission is accurate, timely, and stress-free.

✅ Stay compliant with PAYE, UIF, and SDL deadlines
✅ Spot and fix common errors before they trigger SARS queries
✅ Use practical checklists and shortcuts that save you time
✅ Position payroll expertise as a billable service in your practice

🎯 By attending, you’ll protect your clients, avoid SARS headaches, and strengthen your reputation as a compliance expert.

💡 Cost:

  • Free for CIBA Channel 2 subscribers

  • R345 (VAT incl.) for non-subscribers

👉 Don’t miss this opportunity to go into October confident and compliant.

🔗 Register here



Choose Your Path to Exclusive Insights

Stay ahead in the world of accounting with premium content designed for professionals like you. Access expert articles, industry trends, and essential resources. Become a CIBA member and claim your CPD hours from CIBA.

CIBA Member Access

R250.00 FREE!

100% Discount when you become a CIBA Member. Join now to claim your CPD Hours. Register here: https://accounts.myciba.org/register


✓ Step 1: Register as CIBA Member
✓ Step 2: Sign up to access premium resources
✓ Step 3: Apply your CIBA discount code for 100% off
Sign Up

Premium

R250.00
Every month


 

Trending


Latest Podcast



Next
Next

From Numbers to Clues: How Analytical Procedures Crack the Case in Reviews