The Audit Committee met three times during the year ended December 2016. The internal and external auditors presented formal reports to the Committee and attended these meetings by invitation. In response to the requirements of the Companies Act, King III and in terms of its charter, the Committee can report as follows:
- The scope, independence and objectivity of the external auditors was reviewed;
- The audit firm Ernst and Young Inc. and audit partner Allister Jon Corshagen, are, in the Committee’s opinion, independent of the Company. Roger Hillen will be succeeding Allister, who is retiring after five years as Massmart’s audit partner, and both he and Ernst and Young Inc. have been proposed to the shareholders for approval to be the Group’s external auditor for the 2017 financial year;
- On an on-going basis, the Committee reviews and approves the fees proposed by the external auditors;
- The appointment of the external auditor complies with the Companies Act, as amended, and with all other legislation relating to the appointment of external auditors;
- The nature and extent of non-audit services provided by the external auditors has been reviewed to ensure that the fees for such services do not become so significant as to call into question their independence;
- The nature and extent of future non-audit services have been defined and pre-approved;
- No reportable irregularities were identified and reported by the external auditors to the Committee;
- The Committee is satisfied that the internal financial controls of the Divisions and Group operated effectively throughout the year ended December 2016 and can be relied upon. In addition, the Committee is satisfied with the Group’s accounting policies and that these have been appropriately and consistently applied throughout the year ended December 2016;
- The Committee reviewed this Integrated Annual Report, and the audited consolidated Group Annual Financial Statements of Massmart Holdings Limited for the year ended 25 December 2016, and recommended them to the Board for approval;
- As at the date of this report, no complaints have been received relating to accounting practices and internal audit of the Company or to the content or auditing of the Company’s financial statements, or to any related matter; and
- The Massmart website has a link enabling the general public to lodge complaints with the Committee. Since establishing this functionality in 2009, no complaints have been received.
Chairperson of the Audit Committee
31 March 2017
|The Audit Committee comprises:
Mr Moses Kgosana
Mr Kuseni Dlamini
Dr Lulu Gwagwa
Ms Phumzile Langeni
All are independent non-Executive Directors. They each have the requisite financial and commercial skills and experience to contribute to the Committee’s deliberations.
More information on the Audit Committee’s roles and responsibilities can be found here.