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You are here: Home > Consolidated financials > Report of the independent auditors to the Minister of Public Enterprises
Report of the independent auditors to the Minister of Public Enterprises
We have audited the financial statements of Eskom Holdings Limited (Eskom) and the group set out within this website for the year ended 31 March 2006. The financial statements of Eskom and the group are the responsibility of Eskom’s accounting authority. Our responsibility is to express an opinion on these financial statements based on our audit. The performance information set out in the directors’ report is the responsibility of Eskom’s accounting authority. Our responsibility is to express an opinion on whether the performance information furnished in terms of sub-section 55(2)(a) of the Public Finance Management Act, 1 of 1999, as amended is fair in all material respects and, on a basis consistent with that of the preceding period.
We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. The audit was also planned and performed to obtain reasonable assurance that our duties in terms of sections 27 and 28 of the Public Audit Act, 25 of 2004, have been complied with. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures included in the financial statements.An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Our opinion on the performance information engagement is based on a test of the reliability of the performance information by way of conducting interviews and holding discussions with management, key personnel and/or stakeholders of Eskom and the group and assessing data trends as well as obtaining an understanding of the systems used to generate, aggregate and report the performance information. We conduct site visits on a sample basis to test systems and data and inspecting premises where necessary. An audit also includes assessing the completeness, accuracy, existence and validity of the performance information as well as reviewing and analysing collected information and effecting re-calculations where considered appropriate and applying suitable criteria as relevant to the subject matter reported, where the criteria is based on Eskom’s internal policies and procedures and shareholder’s compact and is available from Eskom on request.
This performance information engagement was conducted in accordance with the International Standards for Assurance Engagements, Assurance Engagements other than audits/reviews of historical information (ISAE 3000). Therefore, we planned and carried out our work in order to obtain reasonable, rather than absolute, assurance on the reliability of the performance information as set out in the directors’ report. We believe our work provides a reasonable basis for our opinion.
Non-financial performance information is subject to more inherent limitations than financial data, given both their nature and the methods used for determining, calculating or estimating such data. We have not undertaken work to confirm that all relevant issues are included, nor have we carried out any work on data reported in respect of future projections and targets.
In our opinion the financial statements fairly present, in all material respects, the financial position of Eskom and the group at 31 March 2006 and the results of their operations and cash flows for the year then ended, in accordance with International Financial Reporting Standards and in the manner required by the Companies Act, 61 of 1973, as amended, in South Africa, the Public Finance Management Act, 1 of 1999, as amended, and the Public Audit Act, 25 of 2004.
The performance information of Eskom and the group furnished in terms of section 55(2)(a) of the Public Finance Management Act, 1 of 1999, as amended, fairly presents in all material respects Eskom and the group’s performance for the year ended 31 March 2006 against predetermined objectives and is, where applicable, consistent with that of the preceding year.
The transactions of Eskom and the group that had come to the auditor’s attention during auditing were in all material respects in accordance with the mandatory functions of Eskom, as determined by law or otherwise.
PricewaterhouseCoopers Inc
Registered Accountants and Auditors
Chartered Accountants (SA)
SizweNtsaluba VSP
Registered Accountants and Auditors
Chartered Accountants (SA)
Johannesburg
15 June 2006
