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External audit
The committee:
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nominated KPMG as auditors and Mr M Hassan as the independent auditor and designated audit partner respectively to the shareholders for
appointment for the financial year ended June 30 2016, of the group and company, and ensured that the appointments complied with legal and
regulatory requirements for the appointment of an auditor;
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approved the external audit engagement letter, the audit plan and the budgeted audit fees payable to the external auditors;
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determined the nature and extent of all non-audit services provided by the independent auditors and pre-approved all non-audit services
undertaken;
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obtained assurances from the independent auditors that adequate accounting records were being maintained; and
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confirmed that no reportable irregularities had been identified or reported by the independent auditors under the Auditing Profession Act.
Independence of external auditors, KPMG
The committee:
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reviewed representations made by KPMG to the committee;
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confirmed that the auditors did not, except as external auditors or in rendering permitted non-audit services, receive any remuneration or other
benefit from the group;
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confirmed the auditors’ independence was not impaired by any consultancy, advisory or other work undertaken;
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determined the auditors’ independence was not prejudiced as a result of any previous appointment as auditors; and
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considered the criteria specified for independence by the Independent Regulatory Board for Auditors and international regulatory bodies and
found no cause for concern or doubt of the independence of the external auditors, KPMG.
Internal control and internal audit
The committee:
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reviewed the annual internal audit plans and evaluated the independence, effectiveness and performance of the internal audit function;
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considered the reports of the internal auditors on the group’s systems of internal control including financial controls, business risk management
and maintenance of effective internal control systems;
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received assurances that proper accounting records were maintained and that the systems safeguarded the group’s assets against unauthorised
use or disposal;
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reviewed issues raised by internal audit and the adequacy of corrective action taken by management in response thereto;
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assessed the adequacy of the performance of the internal audit function and found it satisfactory; and
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concluded the opinion recommended to the board at year-end that there were no material breakdowns in internal control.
Risk management
The committee:
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reviewed the group’s policies and approach to risk management and found them to be sound;
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considered all material risks to which the group is exposed, ensuring that the requisite risk management culture, policies and systems are
progressively implemented and functioning effectively;
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management is accountable to the board for implementing and monitoring the processes of risk management and integrating this into day-to-day
activities; they confirm these processes through the completion of the quarterly Bidcorp management representation letter submitted to the audit
and risk committee;
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performs ongoing monitoring of the enterprise-wide risk assessment process to ensure risks and opportunities are adequately identified, evaluated
and managed at the appropriate level in each business, and that the individual and joint impact of risks identified on the group was considered;
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reviewed legal matters that could have a material impact on the group, as well as considering the adequacy and effectiveness of the group’s
procedures to ensure compliance with legal and regulatory responsibilities; and
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considered reports provided by management, internal assurance providers and the independent auditors regarding compliance with legal and
regulatory requirements, and found Bidcorp’s processes to be sound and effective.
Audit and risk committee report
Page 54
| Bidcorp Limited Annual integrated report 2016