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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
87
Corporate governance review
(continued)
h
Approved audit fees and engagement terms
of the external auditor.
h
Determined the nature and extent of allowable
non-audit services and approved contract
terms for non-audit services by the external
auditor.
h
Reviewed the organisation’s application and
extent of application of the principles set out
in the King IV
TM
Report on Corporate
Governance.
Key areas of focus during the
reporting period
The committee’s key focus areas during the
year included:
h
discharging its functions in terms of its charter
h
mandatory audit firm rotation
h
special review of the ANN7 contract
h
impact of changes to accounting standards
h
FutureFit finance structure reorganisation, and
h
King IV
TM
recommendations.
Financial statement reporting
issues
The audit committee’s main responsibility in
relation to the group’s financial reporting is
to review, with both management and the
external auditor, the appropriateness of the
group’s annual financial statements with its
primary focus being on:
h
the quality and acceptability of accounting
policies and practices
h
material areas where significant judgements
have been made, along with any significant
assumptions or estimates, or where
significant issues have been discussed with
or challenged by the external auditor, and
h
an assessment whether the annual financial
statements, taken as a whole, is fair, balanced
and understandable and provides the
information necessary for shareholders to
assess the group’s position and performance,
business model and strategy.
The significant judgements and issues and
conclusions reached/actions taken by the
audit committee in relation to the 2018 annual
financial statements are outlined below. The
significant judgements and issues are broadly
comparable in nature to prior years. Each of
these matters was discussed with the external
auditor and, where appropriate, addressed.
Report of the audit committee
(continued)
for the year ended 31 March 2018
Matters for
noting
Financial impact on annual
financial statements
Conclusions reached
Sale of MWEB
operations and
assets
Profit on sale of business –
R117m
Cash proceeds – R141m
Key accounting and disclosure impacts of the
disposal were outlined to the audit committee
Having reviewed management and the
external auditor’s reporting as well as
disclosure of the disposal in the annual
financial statements, the audit committee
concluded that it was satisfied with the
accounting and disclosures made
DStv Media
Sales penalties
Competition Commission
penalties R22m. Media
Development and Diversity
Agency (MDDA) contribution
expense R8m over three years
The audit committee reviewed the update
from management and the external auditor’s
reporting on this matter. The audit committee
was satisfied with disclosures in the annual
financial statements