Adcock Ingram Integrated Report 2018

65 ADCOCK INGRAM  Integrated Report 2018 The Committee has nominated EY as the independent external auditors of the Company for the year to June 2019. The Committee is satisfied that EY and the individual auditor designated by EY as responsible for performing the functions of the auditor, Mr Warren Kinnear, are accredited as such on the JSE list of auditors and can be regarded as independent and are thereby able to conduct their audit functions without any conflict or influence. In arriving at the conclusion of independence, the Committee considered multiple factors, good governance and quality control processes currently applied to EY, including conducting the external auditor independence evaluation, the reviews conducted by IRBA on the designated auditor and the external audit firm, and the internal reviews conducted on the designated auditor. Furthermore, a rigorous partner rotation process is applied, which contributes to the independence assertion. The Committee remains cognisant of the developments in the Audit profession. The external auditors continue to have unrestricted access to the Audit Committee and its Chairperson. The overall audit process includes a private open dialogue between the external auditor and the Committee. Matters typically discussed, include the external auditor’s assessment of their audit interactions with management, whether any limitations were placed by management on the scope and execution of the audit, including any special matters that need to be brought to the Committee’s attention. The Committee can report that its working relationship with the EY designated partner is professional and functional. The Committee determined the fees to be paid to the external auditor and agreed to the terms of their engagement and audit plan in consultation with executive management. The audit fee for the year ended 30 June 2018 has been fully disclosed in note 6.1 of the annual financial statements. The Committee is also responsible for determining the nature and extent of non-audit services that the external auditors may provide and, in such circumstances, the Committee approves or in limited circumstances pre-approves proposals for such non-audit services. The Committee assessed the quality and effectiveness of the external auditors by reviewing the audit plan, changes thereto as well as the robustness with which the they handle key accounting issues and audit judgements. The Committee received the detailed external audit report for the year ended 30 June 2018 and were satisfied with their conclusions that both the consolidated and separate annual financial statements were fairly presented in all material respects and no material issues were raised. REPORTING The Committee: • Considered and concurred with the adoption of the going-concern premise in the preparation of the financial statements; • Reviewed the appropriateness of the financial statements, other reports to shareholders and other financial announcements made public; • Considered whether the annual financial statements fairly present the financial position of the Company and of the Group as at 30 June 2018 and the results of operations and cash flows for the financial year then ended; • Considered the solvency and liquidity of the Company and considered and made recommendations to the Board on the dividend declarations; • Considered accounting treatments, the appropriateness of accounting policies adopted and the effectiveness of the Group’s disclosure controls and procedures; • Considered whether any concerns were identified regarding significant legal, tax and other matters that could have a material impact on the financial statements; • Reviewed the external auditor’s audit report; • Considered and noted the key audit matters as determined by the external auditors; • Reviewed the representation letter, signed by management; • Confirmed that it has considered the findings contained in the 2018 proactive monitoring report, when the annual financial statements for 30 June 2018 were drafted; and • Reviewed the quality and integrity of the integrated report and the sustainability information before publication. INTERNAL FINANCIAL AND ACCOUNTING CONTROLS The Committee is responsible for reporting on the Group’s systems of internal, financial and accounting controls. The Committee has accordingly considered the reports fromboth internal and external audit on suchmatters and is satisfied that both reports confirm the adequacy and effectiveness of the Group’s systems of internal control and that there were no material breakdowns in the internal control during the financial year. The Committee confirms that it did not receive any concerns or complaints relating to the accounting practices and the internal audit of the Company, the Content or auditing of the Company’s financial statements, the internal financial controls of the Company or any other related matter during the year under review. EXPERTISE AND EXPERIENCE OF FINANCIAL DIRECTOR AND THE FINANCE FUNCTION The Committee, after a formal review remains satisfied that the Chief Financial Officer is suitably experienced, diligent and has the qualifications and expertise to meet the responsibilities of her position. The Committee also concluded that the finance function is effectual and appropriately resourced with competent personnel. Audit Committee report continued