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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
89
Corporate governance review
(continued)
weaknesses in financial control of the company
and its subsidiaries were reported for the year
under review. With regard to the special review
into the ANN7 matter, internal audit identified
some weaknesses around business processes,
and formalisation of MultiChoice’s lobbying
process has been proposed.
Independence and effectiveness
of the external auditor
PwC was reappointed as auditor of the
company until the next annual general meeting.
PwC has been the auditor of MultiChoice
South Africa for 12 years. During PwC’s tenure
as auditors, there have been changes
in the executive management team and a
reorganisation of the finance function which
has helped mitigate risk of familiarity between
their company and management. The
committee believes that the auditor has
observed the highest level of business and
professional ethics. The committee is satisfied
that the auditor has at all times acted with
unimpaired independence.
Audit fees paid to the external auditors
resulted to R13,9m in the past financial year.
All non-audit services provided by the auditor
were approved by the committee during the
current financial year in accordance with the
board-approved policy on non-audit services
performed by the external auditor. The audit
committee approved the provision of
non-audit services that it believes are routing
and recurring services that would not impair
the independence of the auditor and are
consistent with the principles of the Code of
Professional Conduct set by the Independent
Regulatory Board for Auditors. Approved
services included general consulting advice
and limited tax consulting advice such as tax
compliance and tax planning. Services
approved for the financial year 2018
amounted to R2,2m (2017: R4,8m) .
Report of the audit committee
(continued)
for the year ended 31 March 2018
During the year the audit committee reviewed
a representation by the external auditor and,
after conducting its own review, confirmed the
independence of the auditor. The quality of
the external audit was reviewed, focusing on
a range of factors considered relevant to audit
quality and feedback from PwC on their
performance against their own objectives,
the committee concluded the external audit
to be satisfactory. It was confirmed that no
unresolved issues of concern exist between
the group and the external auditor.
The partner responsible for the audit
is required to rotate every five years.
Ms Nana Madikane has been appointed
as the audit partner for five years and will
accordingly step down as audit partner at
the close of the 2018 financial year-end audit.
Alinah Motaung is proposed as the audit
partner for the 2019 financial year.
Confidential meetings
Audit committee agendas provide for
confidential meetings between committee
members and the internal and external
auditors, separately and independently from
senior management.
Expertise and experience of the
group’s chief financial officer and
the finance function
As required by the King IV
TM
principle 8
practice 59f, the audit committee has satisfied
itself that the MultiChoice South Africa
Holdings group chief financial officer has
appropriate expertise and experience. In
addition, the committee is satisfied that the
composition, experience and skillset
of the finance function met the group’s
requirements. Based on an assessment
performed annually, the committee is of the
opinion that the finance function, as well as
the chief financial officer, is effective.