BISICHI MINING PLC ANNUAL REPORT 2017

Governance Audit committee report
Meetings
The committee meets prior to the annual audit
with the external auditors to discuss the audit
plan and again prior to the publication of the
annual results. These meetings are attended by
the external audit partner, managing director,
director of finance and company secretary. Prior
to bi-monthly board meetings the members of
the committee meet on an informal basis to
discuss any relevant matters which may have
arisen. Additional formal meetings are held as
necessary.
During the past year the committee:
• met with the external auditors, and discussed
their reports to the Audit Committee;
• approved the publication of annual and
half-year financial results;
• considered and approved the annual review
of internal controls;
• decided that due to the size and nature of
operation there was not a current need for an
internal audit function;
• agreed the independence of the auditors and
approved their fees for both audit related and
non-audit services as set out in note 4 to the
financial statements.
Financial reporting
As part of its role, the Audit Committee
assessed the audit findings that were
considered most significant to the financial
statements, including those areas requiring
significant judgment and/or estimation. When
assessing the identified financial reporting
matters, the committee assessed quantitative
materiality primarily by reference to the carrying
value of the group’s total assets, given that the
group operates a principally asset based
business. The Board also gave consideration to
the value of revenues generated by the group,
given the importance of production, and its
Adjusted EBITDA, given that it is a key trading
KPI, when determining quantitative materiality.
The qualitative aspects of any financial reporting
matters identified during the audit process were
also considered when assessing their
materiality. Based on the considerations set out
above we have considered quantitative errors
individually or in aggregate in excess of
approximately £300,000 to £350,000 to be
material.
External Auditors
BDO LLP held office throughout the year. In the
United Kingdom the company is provided with
extensive administration and accounting
services by London & Associated Properties
PLC which has its own audit committee and
employs a separate firm of external auditors,
RSM UK Audit LLP (Formerly Baker Tilly UK
Audit LLP). In South Africa Grant Thornton (Jhb)
Inc. acts as the external auditor to the South
African companies, and the work of that firm
was reviewed by BDO LLP for the purpose of
the group audit.
Christopher Joll
Chairman – audit committee
24 Bruton Place
London W1J 6NE
20 April 2018
44 Bisichi Mining PLC