Audit report

Auditor’s objectives: Form an opinion on the financial statement based on an evaluation of the conclusion drawn from

the audit evidence drawn from the audit evidence obtained Express clearly that opinion through a written report that describes the basis of that opinion

In drawing the conclusion the auditor must Whether sufficient appropriate audit has been obtained Whether uncorrected misstatements are material Whether financial statements are prepared in accordance with applicable IFRS Whether significant accounting policies and applied have been disclosed Whether accounting policies are consistent with IFRS Whether the accounting estimates are reasonable Whether the information presented in the financial statements is reliable, relevant, comparable,

and understandable Whether the terminology used is understandable

Structure and content of the unmodified audit report in terms of ISA 700 and SAAPS 31. Title - INDEPENDENT AUDITOR’S REPORT2. Addressee - TO THE SHAREHOLDERS OF SME3. Introductory paragraph – “We have audited the financial statements of Comak Limited,

which comprises of the statement of financial position as at 31 March 2001, and the statement comprehensive income, statement of changes in equity and cash flows for the year ended 31March 2001, and a summary of significant accounting policies and other explanatory notes and the directors report as set out on page 7 to 30”

4. Management’s responsibility – “The company’s directors are responsible for preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and an in the manner required by the Company’s Act of South Africa and for such internal controls as the directors is necessary to enable preparation of financial statements that are free from material misstatements whether due to fraud or error”

5. Auditor’s responsibility – “Our responsibility is to express an opinion on these financial statements based on our audit. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatements.An audit involves performing procedures to obtain audit evidence about amounts and disclosure in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessment, the auditor considers the auditor considers internal controls relevant to the entity’s preparation and fair presentation of 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 controls. 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 statementsWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion”

6. Opinion – “In our opinion, the financial statements presents fairly, in all material respects, the financial position of Comak as at 31 March 2001, and of its financial performance, and cash flow for the year ended in accordance with International Financial Reporting Standard and the manner required by the Companies Act of South Africa”

7. Auditor’s signature – M.M Makoro8. Auditor’s report date – 09 October 20129. Auditor’s address – Thomas T Ticket, Registered Auditor, 44 Montrose Manor, Durban,