Audit Committee

The audit committee operates under an approved charter in accordance with King II, assisting the Board to fulfil its corporate governance supervision responsibilities relating to accurate financial reporting and adequate financial systems and controls. It does so by evaluating the findings of internal and external audits, actions taken and the appropriateness and adequacy of the systems of internal financial and operational controls.

The committee reviews accounting policies and financial information issued to stakeholders.

The chairman of the audit committee reports to the Board on the committee's deliberations and decisions. The internal and external auditors have unrestricted access to the committee. The independence of the external auditor is regularly reviewed and all non-audit related services are pre-approved and reported upon.

The committee is satisfied that the external auditor is independent for the year under review and has nominated for shareholder approval at the annual general meeting, that Deloitte & Touche be reappointed as independent auditors and AF Mackie as the designated auditor.

Membership

The committee consists of four independent non-executive directors. During the year under review MJ Shaw retired as a member and chairman of the committee and was succeeded by DD Barber. Other members include IN Mkhize and AA Routledge, who, like DD Barber, are financially literate and experienced. M Sello was appointed a member of the committee with effect from 25 February 2009.

The group chairman, group chief executive, group financial director, group corporate services executive, internal and external auditors, all attend meetings by invitation.

The committee was formally re-appointed by the Board and met three times during the year under review.

Two members serving on the committee also serve on the risk management committee. This ensures that overlapping responsibilities are appropriately dealt with.

Terms of reference

The committee’s responsibilities include:

Financial director

The committee has for the period under review formally considered and satisfied itself of the appropriateness of the expertise and experience of the group financial director, RW Rees.

Audit and administration

Financial leadership within Murray & Roberts is continuously strengthened to cater for growth in the business, including ongoing employment and redeployment of senior financial executives.

The group internal audit function is tasked with performing risk based audit throughout the Group and adjusts its coverage and focus based on the changing strategic and operational needs of the Group. Internal audit coverage includes review of strategic risk mitigations, an independent validation of control self assessment results, selected review of major systems, processes and projects, CoBiT maturity assessments and related IT Audits. A combined assurance model is adopted to ensure a coordinated approach to all assurance activities.

The audit committee chairman, group financial director and lead external audit partner attend selected contract and subsidiary reviews at half year and full year-end. Audit close-out meetings are held between external auditors and operational management at year-end. A detailed audit summary memorandum is prepared for all operating entities in the Group and a consolidated report is presented to the audit committee.

David Barber
Chairman