Page 39 - KZN Film A Report

audit fees payable to the external auditor
• Determined the nature and extent of all non-audit
services provided by the independent auditor and, where applicable, pre-approved all non-audit services undertaken
• Obtained assurance from the independent auditor that adequate accounting records were being maintained
• Confirmed that no reportable irregularities were identified
or reported by the independent auditor under the Auditing
Professions Act (26 of 2005)
• Met separately with external audit and confirmed that
there were no scope limitations
• Confirmed combined assurance considerations with the
work conducted by internal audit
The committee was satisfied that the Auditor-General is independent of the Institute after taking the following factors into account:
• Representations made by the AG to the committee
• The auditor does not, except as an external auditor or in rendering permitted non-audit services, receive any remuneration or other benefit from KZNFC
• The auditor’s independence was not impaired by any consultancy, advisory, or other work undertaken
• The auditor’s independence was not prejudiced as a result of any previous appointment as an auditor
• The criteria specified for independence by IRBA and international regulatory bodies
Internal Audit
The committee:
• Reviewed and approved both the annual internal audit
plan for the reporting period and ensured that the internal audit focused on the key risk areas of the KZNFC and applied combined assurance requirements
• Evaluated the independence and authority of the outsourced internal audit function and found these to be satisfactory, according to performance feedback provided to the internal auditors during the year
• Ensured that the internal audit function was adequately capacitated and budgeted to perform its role
Risk Management and Internal
Control
The Board assigned oversight of the organisation’s risk management and internal control function to the ARC. The committee fulfils an oversight role regarding all key strategic,
financial, and operational risks. These include financial reporting risks, internal financial controls, fraud risk, and IT risks.
The committee:
• Considered reports from management and assurance
providers as well as outcomes of discussions related to the internal control environment as a whole and determined that the internal control environment is adequate and effective. The committee is satisfied that the appropriate actions required to enhance the control environment are being implemented by management.
• Was unable to fulfil the full extent of its functions as per its work plan for the reporting period. This was due to the lack of adequate members being populated on the Board and thus not being able to be populated at the ARC.
• Reviewed the adequacy and effectiveness of the organisation’s procedures/processes to ensure compliance with legal and regulatory responsibilities. It found that although there were no material compliance incidents.
Combined Assurance
The ARC reviewed the plans and reports of the external and internal auditors and other assurance providers, including management, and concluded that these were adequate to address significant risks facing the business.
The committee held discussions with each assurance provider regarding collaboration and co-ordination among assurance providers and was satisfied that the combined assurance was appropriate.
The committee:
• Considered the appropriateness of the experience and
expertise of organisation’s finance team and concluded that it was appropriate
Annual Report and the Annual
Financial Statements (AFS)
The ARC performs an oversight role regarding the KZNFC ’s Annual Report and the reporting process, which includes the systems of internal financial control. The committee reviewed the organisation’s AFS and is satisfied that in all material respects they comply with GRAP.
The committee:
• Confirmed, based on management’s review and
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