Accounting & Audit

Attorneys’ trust accountant risk and risk to the practice’s business

Written by Jannie Dannhauser, CA(SA) of LUMENROCK on 7 July 2016

Whenever I do an audit on an attorneys trust account I am reminded of the uniqueness of the accounting and systems related to attorney trust accounts. As opposed to other businesses it reflects receipts and payments only, but creates assets and liabilities in the process, and not income and expense. Client accounts are in credit where in business accounts they are in debit. This is enough to throw the most experienced commercial bookkeeper off track.

Read more: Attorneys’ trust accountant risk and risk to the practice’s business

Disqualification of Directors: United Kingdom

Extracted, merged and commented on by Pieter Esterhuizen of LUMENROCK, from articles published on Rosemont International's website ( and on, both published and extracted from STEP's Wealth Structuring News Digest on 8 September 2014


Last year, the UK Department for Business, Innovation and Skills (“BIS”) published a discussion paper entitled: ‘Transparency & Trust: Enhancing the transparency of UK company ownership and increasing trust in UK business’. This proposal concerned the factors to be taken into account by the UK courts when considering whether an individual’s conduct had been such that he was unfit to act as a director and should be disqualified from managing a company.

Read more: Disqualification of Directors: United Kingdom 

Review or audit?

Extracted from RSM Betty & Dickson, published 01 April 2014


The Companies Act 2008 brought at least two alternatives to the traditional audit: Firstly, some smaller companies have no requirement at all, leaving shareholders with the ability to choose their own level of assurance, if any. For others, the concept of an “independent review” of the financial statements has been introduced. 

Actually, the concept of a review engagement is not a new one at all. Interim financial statements have been reviewed for years and, internationally, many companies have used the review mechanism as an alternative to an audit where independent assurance is required but at a lower level (and cost, hopefully) than an audit.

Read more: Review or audit?

Removal of a director under the Companies Act, 2008

Extracted from Bowman Gilfillan, article by Bontle Pilane, published 10 January 2014

Imagine you are a shareholder in a company with two directors. All that stands between you and an important sale of shares transaction is a resolution by the board authorising the transfer of the shares, but one director has disappeared. Despite sending him notices, he does not attend board meetings, written resolutions are similarly ignored, and he does not respond to correspondence. This scenario has been encountered all too often by clients who were left with no option but to consider removing the director, and the hindrance to the transaction. However, it is important to know in which circumstances a director may be removed and whether the provisions of the Companies Act, 2008 (Companies Act) or the client's Memorandum of Incorporation (Memorandum) apply to such removal.

Read more: Removal of a director under the Companies Act, 2008

EFT Fraud in the Workplace

Article by LDSW Inc., July 2013

Sophisticated EFT fraud at the workplace is on the increase – in fact it has become rampant! One of the main reasons why most cases are not heard of is that it may reflect poorly on companies – reflecting poor control systems and inept management.

The impact of the global economic recession

Read more: EFT Fraud in the Workplace

Failure to submit annual returns leads to deregistration of companies and close corporations

Extracted from Bowman Gilfillan Attorneys (, published 14 June 2013

The submission of an annual return to the Companies and Intellectual Property Commission (CIPC) is a requirement of the South African Companies Act, 2008, and a relatively easy matter for any company to comply with. Non compliance, however, can have grave consequences for companies and their ability to transact.

Read more: Failure to submit annual returns leads to deregistration of companies and close corporations




Bertu Nel
Louis Oosthuizen Junior Golf Academy
On behalf of the Louis Oosthuizen Junior Golf Academy, we wish to thank LUMENROCK for the outstanding advice and services rendered to the Academy. We value the honesty, professionalism and very high ethical standards of the company, directors and staff. It is a pleasure and honour to be associated and do business with LUMENROCK.
IS Ferreira
IS Ferreira
I have known Pieter Esterhuizen for over ten years in his capacity as my accountant and financial advisor. His sound and very professional financial advice has always been outstanding. He and his firm is dynamic, trustworthy and very loyal to me as a client. It is an honour and privilege for me to be associated with Pieter and LUMENROCK.
Gerrit and Agnes Kirsten
Gerrit and Agnes Kirsten
We would like to thank Jaco van Niekerk for his financial advice and assistance in setting up our retirement options, and are looking forward to a longstanding business relationship with him and LUMENROCK Financial Consultants. We appreciate his honesty and sincerity and the professional way in which everything was done. - See more at:



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