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Hyprop Investments Limited
Integrated annual report and consolidated financial statements
2017
89
Report of the
audit and
risk committee
for the year ended 30 June 2017
The audit and risk 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 and risk committee are independent non-
executive directors, in compliance with the South African Companies Act
and as recommended by King IV. The external and internal auditors and
executive management are invited to attend every meeting of the
committee.
Gavin Tipper’s dual role as chairman of the board of directors and member
of the audit and risk committee, is specifically approved by shareholders
at the annual general meeting of the company.
Functions
During the period, the audit and risk committee:
■■
Considered any proposed changes to accounting policies
■■
Advised the board on any accounting implications of major
transactions
■■
Reviewed the scope of work and reports of the internal audit function
■■
Recommended the appointment of external auditors for approval by
shareholders
■■
Established guidelines for recommending the use of external auditors
for non-audit services, to maintain independence
■■
Monitored compliance with REIT requirements, in accordance with the
JSE Listings Requirements and confirmed that the risk management
policy, which prohibits the company from entering into derivative
transactions not in the ordinary course of business, has been complied
with in all material respects
■■
Considered the JSE proactive monitoring process in respect of IFRS
compliant consolidated financial statements.
The audit and risk committee is satisfied:
■■
With the independence of the external auditor, KPMG Inc., after
considering the report to the audit committee motivating its
independence
■■
With the terms, nature, scope and proposed fee of the external
auditor for the year ended 30 June 2017
■■
With the consolidated financial statements and accounting practices
used in their preparation and has recommended the integrated annual
report, including the consolidated financial statements, to the board
for approval
■■
With the company’s continuing viability as a going concern, which it
has reported on to the board for the board’s deliberation
■■
That the company’s financial director, Laurence Cohen, has the
necessary expertise and experience to carry out his duties, as required
by paragraph 3.84(g)(i) of the JSE Listings Requirements.
■■
That the company has established appropriate financial reporting
procedures and that these procedures are operating effectively, as
required by paragraph 3.84(g)(ii) of the JSE Listings Requirements.
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 consolidated financial statements, were
considered by the audit and risk committee and dealt with as appropriate.
Lindie Engelbrecht
Audit and risk committee chair
1 September 2017