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management and supported by the Auditor-General:• The accounting policies and standard operating procedure were reviewed during the course of 2006 andupdated to comply with South African Statements of Generally Accepted Accounting Practice (GAAP). and is expected to improve the respective internal audit control and reporting measures. undertaken and the appropriate skills have been sourced from other service providers to ensure that the accounting recording and reporting issues will be resolved in the short term.Fraud and theft amounting to R2.9 million was detected ranging from February 2006 to June 2007.A forensic audit was performed to quantify the full extent of the loss. The employees in question areloss that Mintek suffered. Full disclosure of this was made under note 34 in the Annual FinancialStatements.March 2007 and concluded that they fully comply, in all material respects, with the requirements of thePublic Finance Management Act, 1999 (Act No. 1 of 1999), as amended, and GAAP.The Audit Committee has requested management to review and evaluate Mintek’s existing internalcontrols to identify areas that can be improved upon.The Audit Committee agrees that the adoption of the going concern premise is appropriate in preparing thewhich will provide a sound basis for Mintek to meet its obligation to its stakeholders. The Audit CommitteeMr. M Mphomela – Chairman of the Audit CommitteeDated: 31 August 2007Audit Committee Members:Dr. PP JourdanDr. J BredellMs. L MhlabeniMs. FG MthethwaMr. S Sikhosanaannual report 2007 56