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REPORT OF THE AUDIT COMMITTEE
for the year ended 30 June 2015
The audit committee has pleasure in submitting its report, as required by
section 94(7)(f) of the Companies Act, for the period under review.
The committee is governed by a formal charter that codifies its role and
responsibilities, including the responsibility for reviewing accounting,
auditing and financial reporting matters. The committee reviews
adherence to Hyprop’s systems of internal controls and, where necessary,
monitors improvements.
Members
All members of the audit committee are independent non-executive
directors, in compliance with the South African Companies Act and as
recommended by King III. The external and internal auditors and executive
management are invited to attend every meeting.
Functions
During the period, the audit committee:
Q
Considered any proposed changes to accounting policies
Q
Advised the board on any accounting implications of major
transactions
Q
Reviewed the scope of work and reports of the internal audit
function
Q
Recommended the appointment of external auditors for approval by
shareholders
Q
Established guidelines for recommending the use of external auditors
for non-audit services, to maintain independence
Q
Monitored compliance with REIT requirements, in accordance with
the JSE Listings Requirements and confirmed that the risk management
policy has been complied with in all material respects.
The audit committee is satisfied:
Q
With the independence of the external auditor, Grant Thornton, after
considering the report to the audit committee motivating its
independence and has recommended its reappointment at the
forthcoming annual general meeting
Q
With the terms, nature, scope and proposed fee of the external
auditor for the year ended 30 June 2015
Q
With the financial statements and accounting practices used in their
preparation and will recommend the integrated report, including the
financial statements, to the board for approval
Q
With the company’s continuing viability as a going concern, which it
has reported on to the board for the board’s deliberation
Q
That the company’s financial director, Laurence Cohen, had the
necessary expertise and experience to carry out his duties, as required
by paragraph 3.84(h) of the JSE Listings Requirements
All concerns and complaints received from within or outside the group
relating to accounting practices and internal financial controls, and
the content or auditing of the company’s financial statements, were
considered by the audit committee and dealt with as appropriate.
Lindie Engelbrecht
Audit committee chairman
31 August 2015
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Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS