GOVERNANCE > Overview
N Siyotula (Chairman)
This committee meets a minimum of three times a year with special meetings called as and when required. The committee also meets with the group’s external auditors and Taste Holdings’ executive management periodically.
It comprises three independent non-executive directors. The CEO and CFO, who attend meetings by invitation and do not have a vote. The chairman of the board is not a member of the committee as from 29 January 2018.
The external auditor also attends meetings by invitation.
The audit and risk committee ensures that appropriate checks and balances are in place to ensure robust, independent and efficient audit processes and that financial reporting throughout the group is accurate and reliable. The audit and risk committee has updated, formal board approved terms of reference. The board is satisfied that the committee has complied with these terms and with its legal and regulatory responsibilities as set out in the Companies Act , King IV and the JSE Listings Requirements. The terms of reference for the audit and risk committee intend to ensure compliance with both governance recommendations and statutory requirements.
The board believes that the members collectively possess the knowledge and experience to exercise oversight of the company’s financial management, external auditors, the quality of the company’s financial controls, the preparation and evaluation of the company’s financial statements and financial reporting. The board has established and maintains internal controls and procedures, which are reviewed on a regular basis. These are designed to manage the risk of business failures and to provide reasonable assurance against such failures, but this is not a guarantee that such risks are eliminated.
The statutory report of the committee can be found on page 54 and the risk management report is on page 7.
In February 2018, the audit and risk committee formally evaluated the performance and effectiveness of the external auditor in terms of King IV and the JSE Listings Requirements.
It confirmed the suitability and effectiveness of the external auditor and nominated Grant Thornton for reappointment as external auditor for the 2019 financial year, having satisfied itself that the company and its individual auditor are properly accredited and independent. The appointment is to be ratified by shareholders at the upcoming annual general meeting. Grant Thornton replaced BDO South Africa Incorporated during the year. The appointment will allow the company to maintain a top quality auditor while achieving its objective of reducing costs.
The committee also determines and carefully monitors the use of the external auditor for non-audit-related services. The formal policy in place precludes the auditor from providing services that could impair audit independence.