Our performance in 2009 - Sappi

96 Audit committee report continued
• Monitoring of the adequacy and efficiency of the group’s
information systems and receiving from them reports thereon
• Reviewing quarterly, interim and final financial results and
statements and reporting for proper and complete disclosure
of timely, reliable and consistent information and confirming
the appropriateness of accounting policies used
• Evaluating on an ongoing basis the appropriateness, adequacy
and efficiency of accounting policies and procedures, com-
pliance with generally accepted accounting practice and
overall accounting standards as well as any changes thereto
• Discussing and resolving any significant or unusual accounting
problems
• Reviewing and monitoring capital expenditure throughout the
group for adequate control, monitoring and reporting
• Monitoring the management and reporting of tax-related
matters
• Monitoring the management and effectiveness of the accounting
and taxation risks as set out in the group’s ERMF
• Reviewing and monitoring all key performance indicators to
ensure that decision making capabilities and the accuracy of
the related reporting and financial results they aid are maintained
at industry levels.
Internal audit
• Direct reporting by the group head internal audit to the chairman
of the committee
• Monitoring the effectiveness of the internal audit function
in terms of its scope, plans, coverage, independence,
skills, staffing, overall performance and position within the
organisation
• Monitoring and challenging, where appropriate, action taken
by management with regard to adverse internal audit findings
• Forming a view on the adequacy and effectiveness of the
control environment.
External audit
• Recommending to the board the selection of the external
auditors and approving their audit fees
• Monitoring the effectiveness of external auditors in terms of
their skills, independence, audit plan, reporting and overall
performance
• Approving non-audit services to be rendered by the external
auditors and monitoring conflicts of interest
• Considering whether the extent of reliance placed on internal
audit by the external auditors is appropriate and whether there
are any significant gaps between internal and external audit.
Regulatory reporting
• Reviewing the adequacy of the regulatory reporting processes,
including the quality of that reporting and the adequacy of
systems and people to perform these functions
• Considering the contents of any regulatory reports related to
thekeyfunctionsofthecommitteeandmonitoringmanagement
actions to resolve any issues identified
• Performing such other functions as are prescribed in the
regulations relating to the Act.
Having considered, analysed, reviewed and debated information
provided by management, internal audit and external audit, the
committee confirmed that:
• the internal controls of the group have been effective in all
material respects throughout the year under review;
• these controls have ensured that the group’s assets have
been safeguarded;
• proper accounting records have been maintained;
• resources have been utilised efficiently; and
• the skills, independence, audit plan, reporting and overall
performance of the external auditors are acceptable and
that it recommends their reappointment in 2010.
Appropriateness of the expertise and experience
of the chief financial officer
In terms of the JSE Listings Requirements the audit committee
had, at its meeting held on 05 November 2009, satisfied itself
as to the appropriateness of the expertise and experience of
the chief financial officer.
Annual financial statements
The committee has:
• reviewed and discussed the audited annual financial statements
included in the annual report with the external auditors, the
chief executive officer and the chief financial officer;
• reviewed significant adjustments resulting from external audit
queries and accepted any unadjusted audit differences; and
• received and considered reports from the internal auditors.
The committee concurs with and accepts the external auditors’
conclusions on the annual financial statements and has
recommended the approval thereof to the board. The board
has subsequently approved the financial statements, which
will be open for discussion at the forthcoming annual general
meeting.
Dr D Konar
audit committee chairman
04 December 2009