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FINANCIAL OVERVIEW
Audit and risk committee report
Duties carried out
The committee has successfully performed its duties during the financial year. In the fulfilment of these duties, the major areas of focus were revenue
recognition, recoverability of trade receivables, carrying value of goodwill, intangibles and investments, risks associated with management override
of controls, enterprise risk management oversight, assessment of the ability of the group to continue as a going concern, related-party transactions,
the overall presentation of the financial information to shareholders, as well as other matters requiring significant judgement.
The committee conducted a review of the annual integrated report.
The committee confirms the following statutory and delegated duties were adequately addressed and sets out the results below.
Financial statements
The committee:
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confirmed, based on management’s review, that the consolidated and separate financial statements were prepared on the going concern basis;
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examined the consolidated and separate financial statements and other financial information made public, prior to their approval by the board;
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considered accounting treatments, significant or unusual transactions and accounting judgements;
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considered the appropriateness of accounting policies and any changes made thereto;
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considered any problems identified as well as any legal and tax matters that could materially affect the financial statements; and
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met separately with management, external audit and internal audit, and satisfied themselves that no material control weakness exists.
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 2017, of the group and company, and ensured that the appointments comply 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;
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
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