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INTEGRATED REPORT 2018
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The TAC and GAC meet both the external and internal auditors separately in private sessions, without executive
management being present. The Chief Executive and the Chief Financial Officer, along with other members of
senior management, attend Committee meetings, as necessary, at the invitation of the Chairmen of the Committees.
The PPS Group’s policy on non-audit services, which is reviewed annually by the Committees, sets out what
services may be provided to PPS by the external auditors. All non-audit services are pre-approved by the GAC.
The Committees conduct a formal external auditor evaluation process. This evaluation occurs annually and includes
various criteria and standards such as independence, audit planning, technical abilities, audit process/outputs
and quality control, business insight and general factors (such as black economic empowerment credentials).
The Committees keep abreast of current and emerging trends in international accounting standards.
Both committees have satisfied themselves:
• as to the effectiveness of the PPS Group’s system of financial controls;
• that the financial statements of PPS Holdings Trust, PPS Insurance and its subsidiaries have been prepared in
accordance with IFRS and the requirements of the Companies Act, 2008; and
• that the external auditor is independent of PPS Holdings Trust, PPS Insurance and its subsidiaries.
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 performed, among
others, the following functions:
• Reviewed and recommended for approval the annual financial statements
• Considered the factors and risks that might affect the financial reporting
• 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
• Approved 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 its independence was
not impaired
• Confirmed that no reportable irregularities had been identified or reported by the independent auditors under
the Auditing Profession Act
AUDIT COMMITTEES’
REPORT
(continued)