Related Disclosures Refer to notes 10, 15, 16 and note 2.7 (accounting policies), 3 (Significant accounting estimates and judgements) and 4.1 (financial risks) of the accompanying financial statements. Audit Response • We discussed and understood from management the impairment process, governance, approval and implementation of the ECL model. • We used our IT Specialist and discussed with management to assess the completeness, accuracy and validity of data and inputs used during the development and application of the ECL models scoped; Consumer Finance Agreements (CFA), Cards, Personal Loans and Finance Leases. • We obtained and tested loan arrears reports and ensured all those arrears exceeding 90 days past due were included in the impaired portfolio category for specific impairment assessment. • We assessed proper staging of all financial asset portfolios. • We obtained explanations for customers on caution lists and assessed their staging. • We engaged with our credit specialist and: – Gained an understanding of the nature of the underlying loans in the loan portfolio. – Reviewed and reperformed the management ECL revised model calculations for accuracy. – Obtained the appropriate management data and performed the relevant procedures to prepare the management data for the challenger ECL model using independent inputs (PD, LGD, EAD, Cost Conversion Factor (CCF) and forward-looking macro-economic factors). – Discussed with management to understand and resolve the differences arrived at based on management’s calculations and the challenger model. • We reviewed the minutes of the Risk Management Committee to identify any matter relating to ECL such as inputs used in calculation of postmodel management adjustments. • We performed an analytical review and analysed year-on-year variances and movement in ECL and linked to movement in facilities and obtained explanations from management. • Where exposures are collateralised, we evaluated the Company’s legal rights to the collateral, as well as the appropriateness of the valuations of the collateral in relation to ECL determination, and the linking of collateral to the corresponding accounts. • We reviewed and assessed the completeness of the disclosures in the Financial Statements for compliance with IFRS Accounting Standards including disclosures on significant inputs. Other Information The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, including the Corporate Governance Report, the Statement of Compliance, the Statement of Directors’ Responsibilities, the Other Statutory Disclosures and the Secretary’s Certificate, but does not include the consolidated and separate financial statements, and our auditor’s report thereon. All other information in the Annual Report, except those disclosed above, will be made available to us after the auditor’s report date. If we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Our opinion on the consolidated and separate financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 113 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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