Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 10
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SASOL LIMITED GROUP
Report of the Audit Committee continued
Key Issues
Internal controls
over financial
reporting
Judgments in Financial
Reporting
• Management’s
conclusion relating to the
effectiveness of internal
controls over financial
reporting require a certain
degree of judgement.
• A separate Board
committee, the
Capital Investment
Committee reviews the
implementation of the
digital roadmap for Sasol
and the security control
environment. The Capital
Investment Committee
overseas the IT control
environment.
Audit Committee Review
Conclusions
• On a quarterly basis, the Committee
assesses feedback from management
on the status of the effectiveness
of internal controls over financial
reporting. This provides the
Committee with an opportunity
to directly challenge and question
management on open and remediated
material control issues and emerging
risks.
• Considering the results of combined
assurance findings, the Committee
considered responses to any fraudulent
activity, results of SOX reviews and the
remediation of weaknesses and the
findings of internal and external audit.
• The Committee scrutinises the status
of specific material control issues and
their associated remediation plans.
• The Committee also reviewed the
progress by management towards
remediating the material weakness
reported for FY20 in respect of
the controls over the impairment
assessment process, isolated to the
assessment of the Southern Africa
Energy value chain assets.
• The Capital Investment
Committee reviews
investment decisions,
reports on capital
expenditure and progress
on projects against
budgets.
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• The Committee reviewed the progress
by management towards remediating
the material weakness related to the
LCCP control environment reported
for FY19, and concluded that the
remediation efforts have been
successful in addressing the material
weakness.
• The Committee also noted that the
FY20 material weakness has been
expanded in respect of the controls
over the impairment assessment
process, relating to the Southern Africa
integrated value chain assets.
Sasol Annual Financial Statements 2021