IDEAS home Printed from https://ideas.repec.org/a/bbn/journl/2017_2_1_coetzee.html
   My bibliography  Save this article

Independent Review Or Audit? The Sme Implications Worth Pondering

Author

Listed:
  • FRANCOIS COETZEE

    (NWU School of Business and Governance, Potchefstroom campus, South Africa)

  • PIETER BUYS

    (WorkWell Research Unit, NWU School of Business and Governance, Potchefstroom campus, South Africa)

Abstract

SME accessibility to finance is widely regarded as a crucial contributing factor to sustainability. It is also generally accepted that access to finance is considerably more difficult for SMEs than for larger corporations. The statutory audit of financial statements for qualifying SMEs in South Africa has been abolished and replaced with the option to do an independent review of the financial statements. This paper considers this abolishment from two perspectives. Firstly, the problem being investigated in this study is whether the lack of audited financial statements has negatively affected SME access to bank financing. This is done by testing the perspectives of SME owners/managers in this regard. A further problem looks at mitigating action SMEs can take to improve their risk profile during a banks assessment of a loan application. Knowledge of basic accounting principles has been identified as a potential mitigating factor by various researchers. This study gains insight into the views and perceptions of SME owners/managers pertaining to their perceived accounting knowledge and or skillsets.

Suggested Citation

  • Francois Coetzee & Pieter Buys, 2017. "Independent Review Or Audit? The Sme Implications Worth Pondering," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
  • Handle: RePEc:bbn:journl:2017_2_1_coetzee
    as

    Download full text from publisher

    File URL: http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_2_2017.pdf
    File Function: Revised version, 2017
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    accounting proficiency; audit; independent review; SME finance; SME sustainability;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bbn:journl:2017_2_1_coetzee. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cornelia Pop (email available below). General contact details of provider: https://edirc.repec.org/data/fbubbro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.