Corporate governance report - Accountability and control

Financial statements

The Board is responsible for preparing the financial statements and other information presented in reports to shareholders in a manner that fairly presents the state of affairs and results of the Group’s business operations. The external auditors are responsible for carrying out an independent examination of the financial statements in accordance with International Standards on Auditing.

The annual financial statements are prepared in terms of the Companies Act, the JSE Limited Listings Requirements and International Financial Reporting Standards (IFRS).

The annual financial statements are based on appropriate accounting policies which have been consistently applied and are supported by reasonable and prudent judgements and estimates. The Board is satisfied that the annual financial statements fairly represent the state of affairs of the Group at the end of the financial year and the financial performance and cash flows for the financial year.

Going concern

The financial statements have been prepared on a going-concern basis. After making enquiries and at the time of approving the financial statements, the directors formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue to operate for the foreseeable future. For this reason, the directors continue to adopt the going-concern basis in preparing the financial statements.

Internal control and internal audit

The Board is responsible for ensuring that appropriate systems of internal control are maintained to ensure that Group assets are safeguarded and managed, and losses arising from fraud and/or other illegal acts are minimised. Control systems are continually monitored and improved in accordance with generally accepted best practices.

The Internal Audit department is a function established at Group level, reporting to the Audit Committee, to assist executive management and the Audit Committee in the effective discharge of their respective responsibilities, by means of independent financial, internal control and operational systems reviews.

The Audit Committee’s responsibility in this regard has been reported on in the Audit Committee report included in the financial statements on page 120.

The Board is confident that major business risks are being identified and managed appropriately and that the risk management and internal control framework is operating effectively. Nothing has come to the attention of the Board to indicate that any material breakdown in the functioning of the Group’s internal controls and systems has occurred during the year under review.