INTEGRATED ANNUAL REPORT FOR MULTICHOICE SOUTH AFRICA HOLDINGS (PTY) LTD AND PHUTHUMA NATHI INVESTMENTS (RF) LTD

GOVERNANCE AND ACCOUNTABILITY w w reviewed external audit reports on the consolidated and separate annual financial statements w w reviewed the internal audit charter w w reviewed and approved the internal and external audit plans w w reviewed internal audit and risk management reports and, where relevant, made recommendations to the board w w evaluated the effectiveness of risk management, controls and governance processes w w verified the independence of the external auditor, nominated PwC as auditor for FY2019 w w approved audit fees and engagement terms of the external auditor w w determined the nature and extent of allowable non-audit services and approved contract terms for non-audit services by the external auditor, and w w reviewed the organisations’ application and extent of application of the principles set out in the King IV report on corporate governance. Key areas of focus during FY2019 The committee’s key focus areas during FY2019 included: w w discharging its functions in terms of its charter financial control environment w w reviewing of King IV application w w annual financial statements and other financial public releases, and w w assessing the impact of changes to the IFRS accounting standard. 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: w w the quality and acceptability of accounting policies and practices w w 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 w w an assessment of whether the annual financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the group’s position and performance, business model and strategy. The significant judgements, issues and conclusions reached, or actions taken by the audit committee in relation to the FY2019 annual financial statements are outlined below. Each of these matters was discussed with the external auditor and, where appropriate, has been addressed as key audit matters in the report on the audit of the consolidated and separate financial statements on page 92. 91 MultiChoice South Africa Holdings Proprietary Limited integrated annual report 2019