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AFRICAN DAWN Annual Report 2016

Corporate Governance continued 5. Audit and Risk Committee (continued) • Finance function • Consider the expertise and experience of the financial director; • Consider the expertise, experience and resources of the Group’s finance function; • Consider the effectiveness of internal control over finance. External expertise was brought in to ensure that the skills were appropriate. • Internal audit Due to capital and resource constraints, the group does not have a separate internal audit function. The oversight of internal controls remained with the audit committee and the required testing and investigation was performed in-house by competent financial staff. A separate internal audit division with qualified internal auditor will be formalised and implemented when the group has the necessary capital and resources. The internal audit tasks remain with the audit committee for the time being until the internal audit department will take responsibility for all internal audit matters. Two external experts were consulted during the year, one to value the Elite book and the other to assist with IFRS accounting. • External audit • Act as a liaison between the external auditors and the Board; • Obtain information in order to satisfy itself as to the competency of the external auditors and then nominate for appointment by shareholders; • Consider the scope of audit and non-audit services which the external auditors may provide to the Group; • Review letters from auditors stating points of improvement or control deficiencies; • Approve the fees of the external auditors and assess their performance; and • Annually assess the independence of the external auditors. • Risk management There was no separate risk committee and the audit committee assumed the responsibility and tasks. The responsibilities include, ensuring that management’s processes and procedures are adequate to identify, assess, manage and monitor, Company specific and Group risks; The following risks received detail attention and mention: • Financial / liquidity risks, • Information technology risk • Human resources risk • Operational risk • Legal/compliance risk • Strategic risk Managers are urged to identify, report and assist with mitigating controls and procedures to lower the risk to acceptable levels. 16 AFRICAN DAWN ANNUAL REPORT 2016


AFRICAN DAWN Annual Report 2016
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