The process of a B-BBEE verification by a SANAS approved company can be likened to the same process as a financial audit.
Both processes involve a third party reviewing the company's records and documentation to ensure that they are compliant with the relevant regulations.
The B-BBEE verification process is more complex than a financial audit, as it involves assessing the company's compliance with a number of different criteria, including:
Ownership: The percentage of ownership held by Black people, women, and people with disabilities.
Management control: The extent to which Black people, women, and people with disabilities engage in the management of the company.
Skills development: The company's investment in skills development for Black people, women, and people with disabilities.
Enterprise development: The company's support for Black-owned businesses.
Procurement: The company's procurement practices, including the percentage of goods and services purchased from Black-owned businesses.
The verification process is usually conducted by a SANAS accredited verification company. These companies are independent and have been accredited by SANAS to conduct B-BBEE verifications.
The verification process typically involves the following steps:
The company provides the verification company with all of the relevant documentation, including its financial statements, ownership records, and management control documents.
The verification company independently reviews the documentation and conducts interviews with the company's management team.
The verification company issues a report with its findings.
The company can then appeal the findings of the report if they disagree with them.
The B-BBEE verification process is an important part of ensuring that companies are compliant with the B-BBEE Act. It states the level of transformation and economic development in the company.
Remember the burden of proof is on the measured entity to prove their claim for points. Documents need to be sourced, referenced, and presented, samples will be required, and key staff interviewed.
Here are some of the key differences between a B-BBEE verification and a financial audit:
A B-BBEE verification focuses on the company's compliance with the B-BBEE Act, while a financial audit focuses on the accuracy of the company's financial statements.
A B-BBEE verification is more complex than a financial audit, as it involves assessing the company's compliance with a number of different criteria.
A B-BBEE verification is carried out independently by a SANAS accredited verification company.
You will need a consulting company to help you develop strategies and look for low hanging points that are often overlooked if you are not up to date with the latest requirements and legislation, cannot prepare and reference your portfolio of evidence and guide you through the process. The consultant has no say over the verification process as independence by the technical signatory is key.
Remember a B-BBEE Certificate can get you additional business, or help you keep existing clients.
A financial audit is exactly what it says: an audit of your finances.