Report of the audit and risk committee
for the year ended 31 March 2020
The audit and risk committee (‘the committee’) is pleased to submit its report in compliance with section 94(7)(f) of the Companies Act, 2008. The committee has fulfilled its duties in terms of its statutory obligations contained in the Companies Act, 2008, the JSE Listings Requirements, its terms of reference and the King IV Code on Corporate Governance in South Africa.
The committee is satisfied that in respect of the financial year it has performed all the functions required by law to be performed by an audit and risk committee, including as set out in section 94 of the Companies Act of South Africa and in terms of the committee’s terms of reference and as set out in the corporate governance report. In this connection, and with specific regard to the preparation of the annual financial statements, the committee has:
- evaluated the independence and effectiveness of the external auditors, PricewaterhouseCoopers Inc. (‘PwC’), and is satisfied that the external auditors are independent of the Group having given due consideration to the parameters enumerated under section 92 of the Companies Act of South Africa. The committee accordingly nominates PwC as independent auditors to continue in office. AG Taylor is the individual registered auditor and member of the aforegoing firm who undertakes the audit. PricewaterhouseCoopers has been the auditor of the Group for four years, with the rotation of the designated audit partner during 2017 for the 2018 financial year end;
- as required by paragraph 3.84(g)(iii) of the JSE Listings Requirements, the committee obtained the information listed in paragraph 22.15(h) for the purpose of the reappointment of the external auditor, PwC, and satisfied itself that the external auditor and the audit partner, AG Taylor, have the necessary accreditation and are suitable for appointment;
- ensured and satisfied itself that the appointments of the external auditors, the designated auditor and IFRS adviser are in compliance with the Companies Act of South Africa, the Auditing Profession Act, 2005, and the Listings Requirements of the JSE;
- evaluated and is satisfied with the quality of the external audit and reports issued by the external auditors;
- considered and pre-approved all audit and non-audit services provided by the external auditors, ensuring that the independence of the external auditors is not compromised;
- reviewed and assessed the Group’s risk identification, measurement and control systems and their implementation;
- reviewed and approved the Group accounting policies (refer note 1 to the annual financial statements);
- considered all significant transactions and accounting matters that occurred during the year and evaluated whether the accounting treatment is in terms of IFRS;
- considered the impact of auditing, regulatory and accounting developments during the year;
- evaluated and is satisfied with the implementation of the combined assurance framework and plan;
- evaluated and is satisfied with the effectiveness of the outsourced internal audit function;
- reviewed the written assessment of internal audit on the design, implementation and effectiveness of the internal financial controls. Based on these results the committee is of the opinion that the internal financial controls provide reasonable assurance that financial records may be relied upon for the preparation of reliable annual financial statements; and
- dealt with concerns or complaints relating to accounting practices and internal audit of the Group, the content or auditing of the Group’s financial statements, the internal financial controls of the Group, or any other related matter.
Evaluation of the expertise and experience of the Financial Director
The committee has also considered and satisfied itself of the appropriateness of the expertise and experience of the Financial Director, Mr R Erasmus, and the finance function.
Recommendation of the annual financial statements and accounting policies to the Board for approval
The committee reviewed the accounting policies, judgements, estimates and content of the annual financial statements for the 2020 financial year. The committee is satisfied that they are adequate and appropriate and that the financial statements comply with International Financial Reporting Standards, the Companies Act, 2008 and the JSE Limited Listings Requirements. To this end the committee recommended the annual financial statements to the Board for approval.
28 May 2020