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Apple Commuters Finance Assignment
board meets regularly and monitors executive management. The position of the chairperson is a non-executive appointment and is separate from that of the managing director. The chairperson and chief executive provide leadership and guidance. The directors bring together a wealth of experience from their own fields of business and ensure that debate on matters of strategy, policy progress and performance is robust, informed and constructive. The directors have access to the advice and services of the company secretary, who is responsible to the board for ensuring that board procedures are followed. All directors are entitled to seek independent professional advice about the affairs of the company at the company’s expense.
Determination of executive remuneration
The remuneration committee comprises tow non-executive directors. The committee determines the chief executive’s salary and bonus and establishes guidelines relating to cash compensation and benefit arrangements for all employees.
CORPORATE GOVERNANCE (continued…)
Audit Committee
The audit committee comprises to non-executive directors and the chief executive. The chief financial officer and internal and external auditors have unrestricted access to the audit committee and attend the meetings. Meetings are planned to be held three times per year. The audit committee is charged with the responsibility of monitoring the company’s financial controls, accounting policies and financial reporting. It provides a forum through which the independent external and internal auditors report to the board of directors.
Risk assessment
The risks facing Apple Commuters are closely monitored annually. This involves a risk assessment exercise conducted with the assistance of the internal auditors. The risks are assessed at every business level and controls mitigating these risks are identified. This exercise also assists the internal auditors in ensuring that major risks are correctly and appropriately addressed.
Internal Control
The company maintains systems of internal control over financial reporting and safeguarding of assets against unauthorized use, acquisition and disposal.
The systems of internal control incorporate suitable segregation of conflicting duties wherever possible, and the delegation of authority to suitably appointed and trained personnel. The internal audit function has been co-sourced to a specialist internal audit division of Hoffman Fisher PFK Inc.
There are inherent limitations in the effectiveness of any internal control systems, including the possibility of human error and the circumvention of overriding of controls. Accordingly, even an effective internal control system can provide only a limited amount of assurance with respect to financial statement preparation and the safeguarding of assets. Furthermore, the effectiveness of an internal control system can change with circumstances. Corrective action is taken as and when control deficiencies or opportunities for improvement in the systems are identified. Nothing has come to the attention of the board (through the audit committee) to indicate that any material breach of those controls has occurred during the year under review.
CORPORATE GOVERNANCE (continued…)
Staff participation and development
The company subscribes to the principle of equality. As Apple Commuters (Pty) Limited has only [next page]