PPS - INTEGRATED REPORT 2017

REPORT ON THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

OUR OPINION

In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and

separate financial position of The Professional Provident Society Holdings Trust (the Trust) and its subsidiaries (the Group) as at

31 December 2017, and its consolidated and separate financial performance and its consolidated and separate cash flows for the year

then ended in accordance with International Financial Reporting Standards and the requirements of the Trust Deed.

WHAT WE HAVE AUDITED

The Professional Provident Society Holdings Trust’s consolidated and separate financial statements set out on pages 90 to

165 comprise:

• The Consolidated and Separate Statements of Financial position as at 31 December 2017;

• The Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income for the year then ended;

• The Consolidated and Separate Statements of Changes in Equity for the year then ended;

• The Consolidated and Separate Statements of Cash Flows for the year then ended; and

• The Notes to the Consolidated Financial Statements and Separate Financial Statements, which include a summary of significant

accounting policies;

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards

are further described in the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section of

our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

INDEPENDENCE

We are independent of the Group in accordance with the Independent Regulatory Board for Auditors Code of Professional Conduct

for Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial statements

in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other

ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the International Ethics

Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B).

OTHER INFORMATION

The trustees are responsible for the other information. The other information comprises the Statement of Responsibility by the

Board of Trustees, Certificate by the Secretary, Report of the Independent Actuary, Investment returns and profit allocation to the

policyholder’ PPS-Profit Share Account, Trustees’ report, Audit Committees’ Report, Group Social and Ethics Committee’s Report,

Corporate Governance Report, Administrative Information, Action required by members in regard to the 2018 Annual General

Meeting and Notice to Members of the Annual General Meeting and Form of Proxy. Other information does not include the

consolidated and separate financial statements and our auditor’s report thereon.

Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express an

audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information

identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required