Blue Label Telecoms Integrated Annual Report 2017

considered the Committee’s report

describing how duties have been

discharged; and

submitted matters to the Board

concerning the Company’s

accounting policies, financial

controls, records and reporting,

as appropriate.

Other duties discharged

Financial statements and reporting

The Committee:

ensured that the Group has

established appropriate financial

reporting procedures and that those

procedures are operating (per JSE

mandatory King IV practices);

monitored compliance with

accounting standards and legal

requirements and ensured that all

regulatory compliance matters had

been considered in the preparation

of the financial statements;

reviewed the external auditor’s

report to the Committee and

management’s responses

thereto and made appropriate

recommendations to the Board of

Directors regarding actions to be

taken;

reviewed and commented on the

annual financial statements, interim

reports, paid advertisements,

announcements and the accounting

policies and recommended these to

the Board for approval;

reviewed and recommended to the

Board for adoption the consolidated

budget for the ensuing financial

year; and

considered the going concern status

of the Company and Group on the

basis of review of the annual

financial statements and the

information available to the

Committee and recommended such

going concern status for adoption

by the Board. The Board statement

on the going concern status of the

Group and Company is contained

on page 87 of the Directors’ report.

External audit plan, audit fees and

non-audit services

The ARCC has satisfied itself as to the

independence of the external auditor,

PwC, as set out in section 94(7) of the

Act, which includes consideration of

compliance with criteria relating to

independence or conflicts of interest

as prescribed by the Independent

Regulatory Board for Auditors.

Requisite assurance was sought from

and provided by PwC that internal

governance processes within the firm

support and demonstrate its claim

to independence. D Storm is the

individual registered auditor and

member of the aforegoing firm who

undertakes the audit with the rotation

of the designated audit partner during

2019 for the 2020 financial year-end.

PwC has been the auditor of the

Group for 13 years. The Audit

Committee confirms that it has

executed its responsibilities in terms of

paragraph 3.84(g)(iii) of the Listings

Requirements in its assessment of the

sustainability of the auditor. To assess

the effectiveness of the external

auditors, the Committee considered

PwC’s fulfilment of the agreed audit

plan and variations from the plan, and

the robustness and perceptiveness of

PwC in its handling of key accounting

treatments and disclosures.

The Committee, in consultation with

Executive Management, agreed to the

engagement letter, terms, audit plan

and budgeted audit fees for the 2017

financial year.

Any non-audit services to be provided

by the external auditors are governed

by a formal written policy which

incorporates a monetary delegation

of authority in terms of non-audit

services to be provided. The non-audit

services rendered by the external

auditors during the year ended

31 May 2017 comprised tax advisory

services, tax compliance services and

general advisory services. The fees

applicable to the aforementioned

services totalled R8.4 million (2016:

R11.7 million), of which R6.0 million

(2016: R9.3 million) relate to

acquisition-related costs.

Appointment of PwC

The ARCC has nominated, for

approval at the Annual General

Meeting, the reappointment of PwC

as registered auditors for the 2018

financial year. The Committee also

satisfied itself that PwC is accredited

and appears on the JSE List of

Accredited Auditors as contemplated

in paragraph 3.86 of the JSE Listings

Requirements.

Internal audit and internal controls

Blue Label’s internal audit function

is outsourced to KPMG Services

Proprietary Limited and the role of the

Chief Audit Executive is fulfilled by

the Engagement Director. The ARCC

concludes that the Chief Audit

Executive and internal audit

arrangements are effective.

The Committee:

reviewed the co-operation and

co-ordination between the internal

and external audit functions in order

to avoid duplication of work;

have requested the continued

support from the internal and

external audit teams to work

towards an effective and efficient

combined assurance approach;

examined and reviewed the progress

made by internal audit against the

approved 2016/17 audit plan;

approved the internal audit plan for

the 2017/18 financial year;

considered the effectiveness of

internal audit;

considered internal audit findings

and corrective actions taken in

response to such findings; and

Audit, Risk and Compliance Committee’s

report

continued

BLUE LABEL

INTEGRATED ANNUAL REPORT 2017