To the members of Reunert Limited
We have audited the group annual financial statements and
annual financial statements of Reunert Limited, which comprise the consolidated and separate balance sheets as at 30 September 2011, and the consolidated and separate income statements, the consolidated and separate statements of comprehensive income, the consolidated and separate statements of changes in equity and the consolidated and separate cash flow statements for the year then ended, and a summary of significant accounting policies and other explanatory information, and the directors’ report, as set out from here.
Directors’ responsibility for the financial statements
The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and in the manner required by the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the financial statements present fairly, in all material respects, the consolidated and separate financial position of Reunert Limited as at 30 September 2011, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and
in the manner required by the Companies Act of South Africa.
Report on other legal and regulatory requirements
We were also recently engaged by the company’s audit committee to review the governance process followed in entering into a long-term lease agreement for proposed new head office premises. This review identified that the lease agreement in question had not been properly authorised. In accordance with our responsibilities in terms of sections 44(2) and 44(3) of the Auditing Profession Act, we considered this to constitute a reportable irregularity in terms of the Auditing Profession Act
and reported the matter to the Independent Regulatory Board
The directors responded to the circumstances and conduct in question and took the necessary steps to address the matter
and minimise the loss to the company.
Deloitte & Touche
Per: PJ Smit
14 November 2011