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AFRICAN DAWN 2015 Annual Report

Application of principles in King III continued Governance of information technology King III Principle Explanatory note The board monitors and evaluates significant IT investments and expenditure The Board, through the audit committee, oversees the proper value delivery of IT and monitors that the expected return on investment are derived and protected. The annual financial statements reflect the facts relating to the suspension from the JSE and the subsequent Reportable Irregularity. AFRICAN DAWN 21 ANNUAL REPORT 2015 Internal audit King III Principle Explanatory note The board ensures that there is an effective risk-based internal audit Due to capital and resource constraints, the Company does not have a separate internal audit function. The oversight of internal control remained with the audit committee and the required testing and investigation was performed in-house by competent financial staff or external consultants as required. A separate internal audit division with a 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 of all internal audit matters. The external expert utilised to value the Elite debtors book and the IFRS consultant are examples of this. Internal audit follows a risk-based approach to its plan Internal audit provides a written assessment of the effectiveness of the company’s system of internal controls and risk management The audit committee is responsible for overseeing internal audit Internal audit should be strategically positioned to achieve its objectives Integrated reporting and disclosure King III Principle Explanatory note The board ensures the integrity of the company’s integrated report The company does not prepare an integrated report. It prepares annual financial statements. Sustainability reporting and disclosure should be integrated with the company’s financial reporting The company does not prepare an integrated report. It prepares annual financial statements. Sustainability reporting and disclosure should be independently assured The Board has decided that there would be no further third-party assurances in respect of the Group’s annual report, other than that of the independent auditors. The contents of the report have been reviewed by the audit committee and approved by the Board. The annual financial statements are reviewed by the audit committee and recommended to the board.


AFRICAN DAWN 2015 Annual Report
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