Audit committee

The audit committee comprises three independent non-executive directors Nomgando Matyumza (chairperson), Nonhlanhla Mjoli-Mncube and James Ngobeni and a non-executive director, Malcolm McCulloch. The committee met four times this year. The internal audit manager has unrestricted access to both the chief executive officer and the chairperson of this committee, and is invited to attend and report on his department’s activities at all management meetings.

The chief executive officer, chief financial officer, head of internal audit, external audit and other senior managers attend meetings by invitation. The chairman of the group is not a member of the committee.

The committee meets annually with the external audit partner and the internal audit manager in the absence of management. The chairperson of the committee reports to the board on the activities and recommendations made by the committee.

The independence and objectivity of the auditors is regularly considered by the committee.

Responsibilities of the audit committee include:

  • Overseeing the internal audit function;
  • Reviewing and amending the group’s internal controls and operating procedures to suit changing circumstances;
  • Reviewing the systems in place to ensure that all risk areas are identified and that management institutes appropriate controls and manages risk effectively;
  • Reviewing the financial reporting with regard to reliability and accuracy of information, including specific disclosures in compliance with accounting standards;
  • Reviewing and recommending for adoption by the board such financial information that is publicly disclosed such as the interim report, final profit statement and the annual financial statements;
  • Reviewing compliance with the JSE Listing Requirements and other statutory requirements;
  • Reviewing both the external and internal audit recommendations; and
  • The audit committee also sets the principles for recommending the use of the external auditors for non-audit services.

These responsibilities were discharged at the four meetings held during the year where discussions were held with internal audit, external audit and management.

The systems in place are considered to be adequate to provide reasonable assurance against material loss through fraud or unauthorised use of the group’s assets and to ensure that all transactions are properly authorised and recorded.