AUDIT COMMITTEE REPORT

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					AUDIT COMMITTEE REPORT

The Audit Committee presents its report on activities during the period. THE AUDIT COMMITTEE
The members of the Audit Committee for the period under review were as follows: Rory Scott (Chairman) Rupert Barclay Gordon Waddell Derek Irish The Audit Committee comprises independent non-executives and Derek Irish, a senior partner in an independent accounting practice. The Committee met four times during the period under review, once without management and auditors present. A table showing attendance at committee meetings is available on page 33. Of the current committee members, three are qualified chartered accountants. Biographical details for all directors can be found on pages 22 and 23. The Board of Directors has approved written terms of reference for the Audit Committee. These terms of reference are available on the Company’s website www.dimensiondata.com The main duties and activities of the Committee in the period under review can be summarised as follows:

Chairman of the Committee has met privately with them on two further occasions.

EXTERNAL AUDIT
The Committee reviews performance of the external auditors and the level of audit service provided to ensure the independence of the external auditors. Based on this review, the Audit Committee has recommended the continued appointment of the auditors for the financial year. In the period under review the Committee has reviewed the scope of the interim review and year end audit including the Group materiality level. Auditor independence is discussed and confirmed at each meeting. Approval must be obtained from the Committee at the end of the financial year for audit, tax services and agreed upon procedures in respect of audit certificates. Within the terms of reference the Committee agreed that non-audit services during the financial year exceeding $50,000 on an individual basis or $250,000 in total must be approved by the Committee. Details of the split between audit and non-audit work can be found in Note 6 of the annual financial statements. The Committee considers that the approvals required for audit and non-audit services, together with the other controls in place within the Group, are sufficient to ensure the objectivity and independence of the external auditors. Non-audit work during the period has comprised taxation and various audit certificates. The Committee has met with the external auditors four times during the period under review.

INTERNAL CONTROL
The Committee, together with the Group Risk Committee, reviewed the effectiveness of the Group’s internal controls, including financial, operational and compliance controls, and procedures for identification, assessment and reporting of risks, and has reported to the Board on the outcome of this review. The terms of reference for the Group Risk Committee, which reports to the Audit Committee, are available on the Company’s website www.dimensiondata.com

F I N A N C I A L S TAT E M E N T S
The Committee has reviewed the financial statements for the period, and has considered matters such as the appropriateness of the accounting policies, decisions requiring a major element of judgement, compliance with accounting standards, the going concern assumption and the statement on internal control.

O T H E R M AT T E R S INTERNAL AUDIT
During the period under review PricewaterhouseCoopers have continued to act as internal auditors for the Group. The Committee confirms their programme of work and reviews their reports. The head of the internal audit function has direct access to both the Chairman of the Audit Committee and the Chairman of the Board. The Committee has met with the internal auditors twice during the period under review and the The ethical code and whistleblowing policy is intended to assist individuals who believe they have discovered serious malpractice or impropriety to take the appropriate action. The Committee is satisfied that these arrangements provide for proportionate and independent investigation of matters reported and for appropriate follow up action. A copy of the ethical code and whistleblowing policy is available on the Company’s website www.dimensiondata.com

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