Integrated Reports Senwes Financial Review 2018 - Page 9

FINANCIAL REVIEW ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reason- ably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements. As part of an audit in accordance with ISAs, we exercise pro- fessional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resul ting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. If we conclude that a material uncertainty exists, we are re- quired to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial state- ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, includ- ing the disclosures, and whether the consolidated and sep- arate financial statements represent the underlying transac- tions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the fi- nancial information of the entities or business activities with- in the group to express an opinion on the consolidated and separate financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and sig- nificant audit findings, including any significant deficiencies in internal control that we identify during our audit. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relat- ed disclosures made by the directors. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding indepen- dence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty ex- ists related to events or conditions that may cast significant doubt on the group’s ability to continue as a going concern. of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such com- munication. Report on Other Legal and Regulatory Requirements In terms of the IRBA Rule published in Government Gazette Number 39475 dated 4 December 2015, we report that Ernst & Young Inc. has been the auditor of Senwes Limited for 15 years. Ernst & Young Inc. Director – Mike Herbst Registered Auditor Chartered Accountant (SA) 3 July 2018 EY 102 Rivonia Road Sandton 2146 From the matters communicated with the directors, we de- termine those matters that were of most significance in the audit of the consolidated and separate financial statements FINANCIAL REVIEW Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro- priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 9