ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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Audit Committee Report

External audit and non‑audit services The 2019 financial year was the first year of the tenure of the consortium of SizweNtsalubaGobodo Grant Thornton Inc and AM PhakaMalele Inc as the Corporation’s external auditors. The committee is satisfied with the independence and objectivity of the external auditors, which includes consideration of compliance with criteria relating to independence or conflicts of interest as prescribed by the Independent Regulatory Board for Auditors. Requisite assurance was sought from and provided by Auditor‑General of South Africa (AGSA) that internal governance processes within the firm support and demonstrate its claim to independence. During the year under review, the committee as and when the need arose met with the external auditors without management being present. To assess the effectiveness of the external auditor, the committee considered the external auditors’ fulfilment of the agreed audit plan and any variations from the plan, and the robustness and perceptiveness of the external auditors in their handling of key accounting treatments and disclosures. The committee and Executive Management, approved the engagement letter, audit plan and budgeted audit fees for the 2023 financial year. Any non‑audit services to be provided by the external auditors are governed by a formal written policy and all such services are to be pre‑approved by the committee to ensure that such services do not impair the independence of the external audit firms. The committee has recommended, for approval at the Annual General Meeting, the reappointment of SizweNtsalubaGobodo Grant Thornton Inc and AM PhakaMalele Inc as joint external auditors of the Corporation for the 2024 financial year. The committee as and when the need arise meets with the external auditors to ensure there are no unresolved issues. Financial statements and accounting practices The committee has reviewed the accounting policies and the financial statements of the Corporation and is satisfied that they are appropriate and comply with the International Financial Reporting Standards, the requirements of the Companies Act and Public Finance Management Act (PFMA).

This is the Audit Committee’s report for the financial year ended 31 March 2023. The Audit Committee (‘the committee’) is an independent statutory committee whose membership is appointed at the Annual General Meeting. Terms of reference The committee has adopted its formal terms of reference as approved by the Board. The committee has discharged these responsibilities and conducted its affairs in compliance with these terms of reference. The committee fulfils an oversight role on financial reporting risks, internal financial controls, compliance risks, fraud risk and information and communications technology (‘ICT’) risks as these relate to financial reporting. Internal audit The committee is responsible for the appointment, compensation, retention and oversight of the internal auditor, who is responsible for reviewing and providing assurance on the adequacy of the internal control environment. This function is outsourced to SAB&T Chartered Accountants Incorporated t/a Nexia SAB&T. The committee approved the risk‑based internal audit plan for the 2023 financial year. The engagement partner of the internal audit firm has unrestricted access to anyone in the organisation and reports the findings of the internal audit work to the committee on a regular basis. Internal audit reports functionally to the committee and operationally to the manager in the office of the Chief Executive Officer (‘CEO’). The committee is satisfied with the effectiveness of this arrangement for internal audit. During the year under review, the committee as and when the need arose met with the internal auditors without management being present. The committee considers internal audit to be functioning effectively and to have addressed material risks pertinent to the Export Credit Insurance Corporation of South Africa SOC Ltd (‘the Corporation’ or ‘ECIC’) in its audit. Roles and responsibilities Governance of risk

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