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REPORT OF THE AUDIT COMMITTEE
FOR THE YEAR ENDED 31 DECEMBER 2011
REPORT OF THE AUDIT
COMMITTEE
INTRODUCTION
The committee is pleased to present its report for the financial year
ended 31 December 2011 as recommended by the King Report’s
principles of good corporate governance and in line with the South
African Companies Act No 71 of 2008. The Audit Committee is
constituted as a statutory committee of the group as well as a board
committee approved by the board.
The committee has terms of reference in place, which include both
its statutary duties and those assigned to it by the board, and its
mandate includes:
regarding all factors and risks that may impact on the reporting;
the shareholders;
audit function;
of the finance function;
co-ordinated approach to all assurance activities;
strategy of the company; and
COMPOSITION
The Audit Committee, appointed by the board and approved by the
shareholders in respect of the financial year ended 31 December
2011, comprised the following independent non-executive directors,
who have the requisite financial skills and experience to fulfill the
committee’s duties:
FREQUENCY AND ATTENDANCE OF AUDIT
COMMITTEE MEETINGS
In addition to the committee members, the chief executive, chief
financial officer, the risk manager and head of internal audit and
external audit attend meetings of the committee by invitation.
The committee meets separately with management, internal audit
and external audit at every meeting. During the year under review,
the committee met five times. Attendance of meetings held during
the year under review is presented in the following table:
Member
ZBM Bassa
(chairman)
07-Feb-
11
15-Mar-
11
11-May-
11
15-Jul-
11
09-Nov-
11
DD Mokgatle
AJ Morgan *
LM Nyhonyha n/a n/a n/a
indicates attendance
* indicates absence with apology
OVERSIGHT FOR RISK MANAGEMENT
Although the board has a risk committee to assist with the discharge
of its duties with regard to the integrated risk management process,
the Audit Committee has an interest in risk management as a
result of its responsibility for internal controls. The chairman of the
committee also chairs the Risk Committee and the committee is kept
informed on the performance of risk management.
INTERNAL AUDIT
The group’s internal audit function is fulfilled by Anglo Business
Assurance Services (ABAS) and provides the board with assurance
on the key areas of the group’s internal financial controls.
The internal audit charter was reviewed and approved by the
committee. Internal audit provides assurance that the company
operates in a responsibly governed manner by performing the
following functions:
internal control framework;
controls; and
the audit committee.
Audited annual financial statements
Annual Financial Statements 2011
17