The audit committee operates under an approved charter assisting the Board to fulfil its corporate governance supervision responsibilities relating to accurate financial reporting and adequate financial systems and controls. It does so by evaluating the findings of internal and external audits, actions taken and the appropriateness and adequacy of the systems of internal financial and operational controls.

The chairman of the audit committee reports to the Board on the committee’s deliberations and decisions. The internal and external auditors have unrestricted access to the committee. The independence of the external auditor is regularly reviewed and all non-audit related services are pre-approved and reported upon.

The committee is satisfied that the external auditor is independent for the year under review and has nominated for shareholder approval at the annual general meeting, that Deloitte & Touche be reappointed as independent auditors and AF Mackie as the designated auditor.

Membership

The committee consists of four independent non-executive directors. DD Barber served as chairman of the committee with IN Mkhize, AA Routledge and M Sello as members, all of whom are suitably skilled and experienced.

The group chairman, group chief executive, group financial director, group head of assurance and external auditors, all attend meetings by invitation.

The committee is formally re-appointed annually by the Board and met five times during the year under review.

Terms of reference

The committee’s responsibilities include:

assisting the Board to fulfil its responsibility with regard to financial and auditing oversight including internal financial control matters
monitoring and reviewing the Group’s accounting policies, disclosures and financial information issued to stakeholders
making recommendations to the Board to ensure compliance with International Financial Reporting Standards
discussing and agreeing the scope, nature and priority of the internal and external audits
nominating an independent auditor for shareholder approval, determining external auditor fees and terms of audit engagement
reviewing the quality and effectiveness of the external audit process
reviewing the internal and external auditor reports
reviewing the Group’s annual financial statements and the Group’s financial results and recommending to the Board their publication in the interim and preliminary reports and the annual report
reviewing price sensitive information such as trading statements

The committee terms of reference and policy for non-audit services were reviewed and approved by the Board during the year.

The committee’s responsibilities for the following year have been expanded to include sustainability matters.

Financial director

The committee has for the period under review formally considered and satisfied itself of the appropriateness of the expertise and experience of the group financial director, RW Rees.

Audit and administration

Financial leadership within Murray & Roberts is continuously strengthened to cater for growth in the business, including ongoing employment and redeployment of senior financial executives.

The co-sourcing approach to internal audit is tasked with performing risk based audit throughout the Group and adjusts its coverage and focus based on the changing strategic and operational needs of the Group. Internal audit coverage includes review of strategic risk mitigations, an independent validation of control self assessment results, selected review of major systems, processes and projects, CoBiT maturity assessments and related IT Audits. A combined assurance model is adopted to ensure a coordinated approach to all assurance activities, appropriate to address the significant risks facing the company.

The audit committee chairman, group financial director and lead external audit partner attend selected contract and subsidiary reviews at half year and full year end. Audit close-out meetings are held between external auditors and operational management at year end. A detailed audit summary memorandum is prepared for all operating entities in the Group and a consolidated report is presented to the audit committee.

David Barber
Chairman