Audit Committees: Are the expectations too high?

Nkonki 5th Annual Audit Committee Conference

Ansie Ramalho12 October 2015

Membership criteria

King II

• Financially literate

King III

• IR - standards• IFCs• External audit• Internal audit• Corporate law• Risk

management• Sustainability

issues• IT• Corporate

governance

Co Act

• Economics• Law• Corporate

governance• Finance• Accounting• Commerce• Industry• Public affairs or • Human resource

management• (Elected by

shareholders)

Duties

King II

• IFCs• Internal audit• Risks• Financial reporting• Accounting or auditing

concerns• Compliance with law

King III

• Integrated report• Financial report• Sustainability

• Combined assurance model• external audit• internal audit

• Risk management• Financial reporting• IFCs• Fraud• IT

• Whistle-blowing• Process for appointment

of auditor• Reporting to s/holders

Co Act

• Nominate auditor• Auditor fees and

engagement• Non-audit services• Report in AFS• Concerns and

complaints• Accounting policies• Financial controls• Records• Reporting• (Statutory duties)

Developments since King III

Audit committee reporting

Regulation Risk Cyber security

Auditor rotation MaterialityAssurance

Tax Integrated Reporting WORKLOAD

Beyond the scope of King IV

Ensure skills for reliance on management

Co-ordination with other board committees

Informal information gathering

Planning and prioritising

Figure out materiality