What’s Your PI Score?
By Ayirhubhe Consulting
PI Score in Plain English
In South African accounting, a PI Score (Public Interest Score) isn’t about personality—it’s about compliance. Every company must calculate its PI Score annually to determine whether it requires an audit, an independent review, or only a compilation of financial statements.
The score is calculated using a simple points system based on your company’s size and public impact:
Average Employees: 1 point for each employee.
Annual Turnover: 1 point for every R1 million (or part thereof) in revenue.
Third-Party Liabilities: 1 point for every R1 million (or part thereof) owed to external parties.
Shareholders or Members: 1 point for each shareholder or member at year-end.
Why It Matters
Your PI Score determines the level of financial reporting and assurance your business requires under South African legislation. Businesses with higher scores generally have greater financial responsibility, employ more people, or affect more stakeholders, meaning additional oversight is expected.Companies with lower scores often qualify for less demanding reporting requirements, while higher scores may trigger mandatory audits depending on the circumstances.
How It’s Calculated
Calculating your PI Score is straightforward. Simply add together the points for each category.
For example:
15 employees = 15 points
Annual turnover of R7.5 million = 8 points
Third-party liabilities of R2 million = 2 points
3 shareholders = 3 points
Total PI Score: 28
Although the calculation is simple, the result has a significant impact on your company’s compliance obligations.
What Your Score Means
Generally, your PI Score can indicate the following:
Below 100: Many companies will only require an independent review or compilation, depending on other legislative requirements.
100 and above: An audit may be required, depending on the company’s circumstances.
Special circumstances: Certain companies, such as those holding assets in a fiduciary capacity or operating within regulated industries, may require an audit regardless of their PI Score.
The Bottom Line
Understanding your PI Score is essential for maintaining compliance and planning your financial reporting obligations. It influences your reporting requirements, compliance costs, and can even affect investor and stakeholder confidence.
Calculating your PI Score every year helps ensure your business remains compliant, avoids unnecessary regulatory issues, and is prepared for future growth.
