Interfront Annual Report 2022

PART C: GOVERNANCE 58 13. AUDIT AND RISK COMMITTEE REPORT (CONT.) Evaluation of Financial Statements The Committee reviewed the Annual Financial Statements prepared by the public entity and is satisfied that they comply with the applicable Accounting Standards and that the accounting policies used are appropriate. The Annual Financial Statements were reviewed with the following focus: • Significant financial reporting judgments and estimates. • Clarity and completeness of disclosure and whether disclosures made have been properly set in context. • Changes in the Accounting Policies and Practices. • Significant adjustments resulting from the Audit. • Compliance with accounting standards and legal requirements. • Explanation for the accounting treatment adopted. • Material, unique transaction. • Reasons for year-on-year fluctuations. • Asset valuations and revaluations. • Re-assessment of the useful life of the assets. The review of Annual Financial Statements and the Annual Report for the 2021/2022 Financial Year was completed at the Committee’s meeting held on 27 July 2022. External Audit: Auditor-General of South Africa (AGSA) The Committee noted the terms of the AGSA’s engagement letter, audit strategy, and audit fees in respect of the 2021/2022 financial year. It is legislated that the Auditor General of South Africa is the appointed auditor of the entity and the Committee has noted that there were no non-audit services rendered by them during the year. The Committee has also had in-committee meetings with the AGSA. General Remarks The Committee commends management for the diligence exercised in implementing effective processes, checks, and balances throughout the financial year which resulted in Interfront submitting financial statements that were free from material errors, omissions, and misstatements. The Committee also commends Interfront for remaining compliant with the relevant laws and legislations, especially compliance related to supply chain management. Doris Dondur Thabiso Ramasike Barend Petersen Carmen Mpelwane