PPS Integrated Report 2021 131 | Audit Committees’ Report AUDITOR APPOINTMENT, MANDATORY AUDIT FIRM ROTATION (MAFR) AND TRANSITION An important focus area of the Committees in 2021 was considering a transition plan to implement MAFR, given the required rotation of PricewaterhouseCoopers Inc (PwC) from the 2023 financial year to ensure appropriate continuity in external audit throughout the PPS Group. The rule on MAFR as issued by the South African Independent Regulatory Board of Auditors (IRBA) requires that an audit firm not serve as the appointed auditor of a public interest entity for more than ten years from 2013. To ensure minimal disruption and compliance with MAFR, the Committees undertook a process during 2021 to identify independent auditors for the PPS Group and to implement the appointment with effect from the financial year commencing 1 January 2022. The Committees nominated Ernst & Young Incorporated (EY) for appointment as independent external auditors pursuant to the MAFR requirement with effect from 1 January 2022 to replace PwC, which nomination has been approved by the PPS Holdings Trust and PPS Insurance Company Limited Boards, subject to the approval of members. The Committees have satisfied themselves that EY are independent of the PPS Group, and requisite assurance was sought and provided by EY that internal governance processes within the audit firm support and demonstrate its claim to independence. In terms of the conditions laid out in section 94(8) of the Companies Act and based on its assessment taking consideration of the criteria of King IV and general guidance to Audit Committees, the Committees are satisfied with the performance and quality of the proposed external auditors and lead partner for the year ending 31 December 2022. The appointment of EY as the external auditor for PPS Group entities is subject to the approval of the members of the PPS Group entities at their respective annual general meetings. The notice of the annual general meeting for PPS Holdings Trust included in the integrated report includes a resolution for the approval of the appointment of EY as the external auditor of PPS Holdings Trust. On behalf of the PPS Group Boards, the Committees wish to express the PPS Group Boards’ appreciation for the services rendered by PwC and, in particular, the engagement partners, during their tenure as the external auditors of the PPS Group. EXPERTISE AND EXPERIENCEOF THE GROUP CHIEF FINANCIAL OFFICERAND THE FINANCE TEAM The Committees are satisfied that the expertise and experience of the Group Chief Financial Officer are appropriate to meet the responsibilities of the position. The Committees considered the expertise, resources and experience of the PPS Group’s finance function and concluded that these are appropriate to meet the requirements of the PPS Group. APPROVAL OF THE REPORT The TAC and GAC confrm for the 2021 fnancial year that they have functioned in accordance with their Terms of Reference and as required by the Companies Act and Trust Deed of PPS Holdings Trust and that their reports have been approved by the Directors and trustees. On behalf of the Audit Committees: Ms D L T Dondur Prof H E Wainer Chairman of TAC Chairman of GAC 30 March 2022
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