Internal & External Audit Procedures

Internal & External Audit Procedures

1. Purpose

To establish a systematic approach for conducting internal and external audits that ensure compliance, improve processes, and maintain high standards of governance at Mototolo Platinum Mine.

2. Scope

This procedure applies to all internal departments and external auditors involved in auditing Mototolo Platinum Mine’s operations, financials, safety, environmental compliance, and management systems.

3. Definitions

• Internal Audit: An independent, objective assurance and consulting activity designed to add value and improve the company’s operations.

• External Audit: An audit performed by an independent third party, typically regulatory bodies or external audit firms, to verify compliance and financial reporting accuracy.

4. Internal Audit Procedures

4.1 Planning

• Annual audit plan prepared by the Internal Audit Department, approved by senior management.

• Risk-based approach prioritizing key processes and controls.

• Audit scope and objectives clearly defined.

4.2 Execution

• Auditors conduct interviews, document reviews, process walkthroughs, and tests of controls.

• All findings, observations, and non-conformances are documented.

• Communication with relevant department heads throughout the audit process.

4.3 Reporting

• Draft audit report prepared, summarizing findings, risks, and recommendations.

• Report reviewed with management for accuracy and response.

• Final report submitted to the Audit Committee and senior management.

4.4 Follow-up

• Audit recommendations tracked for implementation.

• Follow-up audits scheduled to verify corrective actions.

• Status reports provided regularly to management.

5. External Audit Procedures

5.1 Notification & Preparation

• Departments notified of upcoming external audits.

• Required documentation and records prepared in advance.

• Designated liaison appointed for communication with external auditors.

5.2 Conducting the Audit

• External auditors perform fieldwork, including inspection, testing, and interviews.

• Site access and cooperation provided as per agreed schedules.

5.3 Reporting

• Preliminary findings communicated during exit meetings.

• Formal audit reports received and reviewed by management.

• Response plans developed for any findings or recommendations.

5.4 Compliance & Remediation

• Ensure timely corrective actions on audit findings.

• Document remediation efforts and evidence of compliance.

• Maintain ongoing communication with external auditors until closure.

6. Confidentiality

All audit-related information is confidential and should be handled in accordance with company policies on data protection and confidentiality.

7. Roles and Responsibilities

• Internal Audit Team: Lead internal audits, prepare reports, and monitor corrective actions.

• Management: Facilitate audits, provide requested information, and implement corrective actions.

• External Auditors: Conduct impartial assessments and report objectively.

• Employees: Cooperate fully with audit teams and provide truthful, complete information.

8. Record Keeping

Audit plans, reports, communications, and evidence of corrective actions shall be retained according to the company’s document retention policy.