This committee met five times during the year with special meetings called as and when required. The committee meets with the group’s external auditors and executive management periodically.
The committee comprises three independent non-executive directors. The CEO and CFO, who attend meetings by invitation, do not have a vote.
The external auditor also attends meetings by invitation.
The audit and risk committee ensures that appropriate checks and balances are in place to guarantee robust, independent and efficient audit processes and that financial reporting throughout the group is accurate and reliable. The audit and risk committee has updated, formal, board-approved terms of reference which are intended to ensure compliance with both governance recommendations and statutory requirements. The board is satisfied that the committee has complied with these terms and with its legal and regulatory responsibilities as set out in the Companies Act, King IVTM and the JSE Listings Requirements.
The board believes that the members collectively possess the knowledge and experience to exercise oversight of the company’s financial management, external auditors, the quality of the company’s financial controls, the preparation and evaluation of the company’s financial statements and financial reporting. The board has established and maintains internal controls and procedures, which are reviewed on a regular basis. These are designed to manage the risk of business failures and to provide reasonable assurance against such failures but this is not a guarantee that such risks are eliminated.
The audit and risk committee and the board formally evaluated the performance and effectiveness of the external auditor in terms of King IVTM and the JSE Listings Requirements. It confirmed the suitability and effectiveness of the external auditors and nominated BDO South Africa Inc. for re-appointment as external auditors for the coming financial year, having satisfied itself that the company and its individual auditors are properly accredited and independent. The re-appointment is to be ratified by shareholders at the upcoming annual general meeting.
The committee also determines and carefully monitors and pre-approves the use of the external auditor for non-audit-related services. The formal policy in place precludes the auditor from providing services that could impair audit independence.