Report of the audit committee
FOR THE SIX MONTHS ENDED 30 JUNE 2013
The audit committee has pleasure in submitting this report, as required by section 94(7) (f) of the Companies Act, for the period under review.
The audit committee is governed by a formal charter which codifies its role and responsibilities including the responsibility for reviewing accounting, auditing and financial reporting matters. The committee reviews adherence to the company’s systems of internal controls and, where necessary, monitors improvements.
Members of the audit committee and attendance at meetings
Details of composition of the committee and attendance at meetings is set out on page 35, and CVs in respect of each member are set out on pages 28 and 34. The committee comprises exclusively independent non-executive directors, in compliance with King III requirements and the Companies Act. The external auditors and executive management are invited to attend every meeting.
During the period independent non-executive director Les Weil passed away. With effect from 28 August 2013 Lindie Engelbrecht was appointed as committee chairman in his stead. The chairman reports to the board on the activities and recommendations made by the committee. On 28 August, 2013 Thabo Mokgatlha was appointed to the board of Hyprop as an independent non-executive director. Thabo was also appointed to the audit committee.
Functions of the audit committee
During the period under review, the audit committee:
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reviewed this integrated report to ensure its integrity; |
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monitored any proposed changes to accounting policies; |
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advised the board on any accounting implications of any major transactions; |
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reviewed the internal audit function; |
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recommended the appointment of external auditors for approval by unitholders; and |
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established guidelines for recommending the use of external auditors for non-audit services to maintain independence. |
The audit committee is satisfied:
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with the independence of the external auditor, Grant Thornton, after considering the report to the audit committee motivating their independence and has recommended their re-appointment at the forthcoming annual general meeting |
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with the terms, nature, scope and proposed fee of the external auditor for the period ended 30 June 2013 |
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with the financial statements and the accounting practices utilised in the preparation thereof and has recommended the integrated report, including the financial statements, to the board for approval |
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with the company’s continuing viability as a going concern, which it has reported on to the board for its deliberation |
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that the company’s Financial Director, Laurence Cohen, had the necessary expertise and experience to carry out his duties, as required by the JSE Listings Requirement 3.84(h). |
All concerns and complaints that were received from within or outside the group relating to accounting practices and internal financial controls, and the content or auditing of the company’s financial statements were considered by the audit committee and dealt with as appropriate.
Lindie Engelbrecht
Audit committee chairman
28 August 2013
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