AUDIT COMMITTEE The role of the Audit Committee is to review the Group’s financial position and make recommendations to the Board on all financial matters, business risks, internal controls and compliance. This includes assessing the integrity and effectiveness of related control systems to ensure that the Group’s business is conducted in a proper and economically sound manner. The responsibilities of the Audit Committee are incorporated into the committee’s charter which is reviewed annually and approved by the Board. The committee has conducted its affairs in compliance with this charter and has discharged its responsibilities contained therein. Audit Committee membership and resources The Audit Committee consists of three independent non-executive directors. Mr RV Smither chairs the committee and its other members are Dr M Griessel and Mr NP Mageza. All members of the committee have the requisite financial knowledge and commercial skills and experience to contribute effectively to committee deliberations. The committee meets at least twice a year as per the Audit Committee charter. The Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Group Audit and Risk Manager (GARM) and representatives from the external auditors attend meetings by invitation. Other members of the Board and management team attend as required. The committee meets separately with the external auditors and internal auditors at least once a year without management present, to ensure that all relevant matters have been identified and discussed without undue influence. Roles and responsibilities The Audit Committee’s roles and responsibilities include its statutory duties per the Companies Act of South Africa and the responsibilities assigned to it by the Board. The Audit Committee fulfils an oversight role regarding financial reporting risks, internal financial controls and fraud risk and Information Technology (IT) risks as it relates to financial reporting. The Audit Committee has discharged its key responsibilities as follows: •
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Reviewed the interim results, period-end financial statements, sustainability disclosure & integrated report, culminating in a recommendation to the Board. In the course of its review the committee: - took appropriate steps to ensure that the financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), and - considered and, when appropriate, made recommendations on financial statements, accounting practices and internal financial controls Confirmed the Internal Audit charter and audit plan Evaluated the effectiveness of risk management, controls and governance processes and satisfied itself about the adequacy and effectiveness of the Group’s system of internal financial controls Reviewed the appropriateness of the combined assurance model in addressing all significant risks facing the Group Considered and recommended to the Board the appointment and retention of external auditors Evaluated the independence and effectiveness of the external auditors Approved the audit fees and engagement terms of the external auditors Determined the nature and extent of allowable non-audit services and approved the contract terms for the provision of non-audit services by the external auditors.