2005/2006 - SANParks

2005South African National ParksREPORT OF THE AUDIT COMMITTEEfor the year ended 31 March 2006The audit committee has adopted appropriate formal terms of reference, whichhave been confi rmed by the Board, and has performed its responsibilitiesas set out in the terms of reference.In performing its responsibilities the audit committee has reviewed thefollowing:• The effectiveness of the internal control systems;• The effectiveness of the internal audit function;• The risk areas of the organisation’s operations to be covered in thescope of the internal and external audits;• The adequacy, reliability and accuracy of fi nancial informationprovided to management and other users of such information;• The accounting or auditing concerns identifi ed as a result of theinternal and external audits;• The organisation’s compliance with legal and regulatoryprovisions;• The activities of the internal audit function, including its annual workprogramme, coordination with the external auditors, the reportsof signifi cant investigations and the responses of management tospecifi c recommendations;• The independence and objectivity of the external auditors; and• The scope and results of the external audit function and its costeffectiveness.The audit committee is also responsible for:• Reporting to the Board and the Auditor-General where a reportimplicates any members of the Board in fraud, corruption and grossnegligence;• Communicating any concerns it deems necessary to the Board,the Auditor-General and if appropriate the external auditors;• Confi rming the internal auditors’ charter and internal audit plan;• Considering the rotation policy adopted for the external auditorsby the Auditor-General;• Conducting investigations within its terms of reference;• Concurring with the appointment and dismissal of the head of theinternal audit department;• Approving the internal audit work plan; and• Deciding whether or not an interim audit report should be subjectedfor review by the external auditors.102