PPS Integrated Report 2021 Audit Committees’ Report | 130 ROLE OF THE AUDIT COMMITTEES The Committees, inter alia, assist the trustees and Directors in discharging their responsibilities relating to the safeguarding of assets, the operation of adequate and effective systems and control processes and the preparation of the integrated report and fairly presented financial statements in compliance with all applicable legal and regulatory requirements and accounting standards. The Committees performed their functions required in terms of the Companies Act and the Trust Deed and executed their responsibilities in accordance with their terms of reference. The Committees, inter alia: ~Reviewed and recommended for approval the annual financial statements. ~Considered the factors and risks that might affect the financial reporting of PPS Holdings Trust and the PPS Insurance Group. ~Confirmed the going-concern basis of preparation of the annual financial statements. ~Reviewed and recommended for approval the integrated report. ~Assessed the effectiveness of internal financial controls systems and formed the opinion that there were no material breakdowns in internal control. ~Ensured that a combined assurance model was applied to provide a coordinated approach to all assurance activities. ~Reviewed the Internal Audit Policy in line with King IV recommendations, and recommended the approval thereof to the PPS Insurance Board. ~Approved the internal audit plan for the financial year. ~Reviewed and evaluated reports relating to internal audit and risk management. ~Nominated PricewaterhouseCoopers Inc. (“PwC”) as the PPS Group’s external auditors. ~Determined the external auditors’ terms of engagement in the external audit engagement letter and determined the audit fees payable to the external auditors. ~Reviewed the quality and effectiveness of the external audit process and the audit plan and assessed the competence of the external auditors. ~Obtained and considered a statement from the independent auditors confirming that their independence was not impaired. ~Confirmed that no reportable irregularities had been identified or reported by the independent auditors under the Auditing Profession Act. ~Ensured no limitations were imposed on the scope of the external audit. ~Determined the nature and extent of non-audit services that the external auditors may provide and pre-approved any such services. ~Maintained oversight over fraud and corruption risk management and established a protocol for confidential reporting. ~Considered whether there were any concerns or complaints whether from within or outside the PPS Group relating to the accounting practices and internal audit of the PPS Group, the content or auditing of the PPS Group’s financial statements, the internal financial controls of the PPS Group or any related matter. ~Made submissions to the Boards on matters concerning the PPS Group’s accounting policies, financial control, records and reporting. EXTERNAL AUDITORS PwC served as the PPS Group’s external auditors for the 2021 financial year. The auditors’ terms of engagement were approved prior to the audit. The Committees satisfied themselves that the external auditors’ appointment complies with the Companies Act and in particular Section 90(2) thereof, as well as the Auditing Profession Act. The Committees are satisfied that both PwC and the audit partner are independent. The external auditors provided assurance that their internal governance processes within their audit firm support and demonstrate their claim to independence. The GAC was comfortable that the non-audit services work was justified and necessary and that it did not give rise to any self-review threat for the external auditors. Audit Committees’ Report (continued)
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