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2020 Transparency ReportDeloitte & Touche South Africa30 September 2020

ContentsDeloitte & Touche South Africa leadership message . 2Deloitte Network South Africa . 5What Deloitte Audit & Assurance brings to capital markets . 10Shaping the future . 13Hard-wiring audit quality into our day to day . 14Organisational capabilities we build . 16Audit quality monitoring & measurement. 18Independence and ethics. 33Appendix A EU EEA audit firms . 40Appendix B Financial information . 42Appendix C Public interest entities . 431

2020 Transparency Report Deloitte & Touche South Africa leadership messageDeloitte & Touche South Africaleadership message1State of the ProfessionThe professional services industry in South Africa, and globally, has been under intensescrutiny and this is true for the audit profession in particular, which exists within acontext of increased levels of economic crime, unethical business behaviour byexecutives and those charged with governance, conflicts of interest and corporatefailures. The role of auditors in these scandals and the perceived absence ofaccountability highlights the expectation gap on the role of external audit.Andrew MackieManaging PartnerAudit & AssuranceDeloitte AfricaThe financial reporting ecosystem is complex, interdependent and each component ofthe ecosystem is integral to the proper functioning of the others. This means that theentire ecosystem must adapt in concert and with speed. Management, auditcommittees, regulators, policy-makers, standard-setters, investors, and auditors are inthis together. It is important to remember that the purpose of the financial reportingecosystem is to serve the public interest by enabling complete, accurate, transparentcorporate financial disclosures.At Deloitte, we take our responsibilities to serve the capital markets and public interestvery seriously. Accordingly, we are deeply committed to investing in capabilities andcontinuous improvement to deliver high-quality audit services.Corporate reporting and audit – a collective responsibilityThrough the corporate reporting process, stakeholders need to be able to identify wellgoverned companies who act in the public interest. Transparent reporting and robustgovernance mechanisms are key tenets of public interest and drive trust.All stakeholders that form part of the financial reporting ecosystem, including theaccounting profession, the corporate world, regulators, and investors, need to worktogether to drive change across the corporate reporting ecosystem to respond to thechanging relationship between companies and the society they work within.We support the market side developments, including strong regulation over directorresponsibilities for the internal control environment and the regulatory oversight ofcorporate reporting. It is critical that companies and their boards are transparent andaccountable for their business and an appropriate strong regulatory environment existsto drive responsible behaviours in the public interest. The fact that CEOs and CFOs of JSElisted entities will be required to attest to the adequacy of controls will ensure thatwhere corporate reporting takes place, individuals are stepping up to the responsibilitiesof ethical governance.Deloitte is committed to this evolution of corporate reporting in the public interest andwill explore elements of this further in a series of points of view to stimulate and informthe debate.Throughout this report, the terms “Deloitte, we, us, and our” refer to one or more of one or more of DeloitteTouche Tohmatsu Limited, its network of member firms, and their related entities. For more information about theDeloitte network, please see p. 3 or loitte/articles/about-thenetwork.html.12

2020 Transparency Report Deloitte & Touche South Africa leadership messageThe impact of COVID-19We acknowledge the devastating impact that COVID-19 had on lives, the economy andemployment. Our first priority always remains ensuring that clients and employeesremain safe and protected. We adhere to the letter and the spirit of the regulationspublished and adopted where necessary. We are delighted by the agility shown byDeloitte employees and partners alike to adapt to the new normal. We continue to growin digitisation and believe that there will be many enhancements in the auditingprofession due to innovation that the COVID-19 landscape put into play.The auditing profession has never been more connected than it is now. This is evidentfrom the formation of the financial reporting task team for COVID-19, under the IRBA,that involved regulators such as the JSE, the Prudential Authority and the Big Four auditfirms to ensure the effectiveness of financial reporting processes amid the pandemic.This is a wonderful example of what can be achieved if we all work together.At DeloitteWe are dedicated to continuous improvement at every level of our organisation andunwavering in our efforts to deepen accountability at every step of the audit.3

2020 Transparency Report Deloitte & Touche South Africa leadership messageDeloitte Network4

2020 Transparency Report Deloitte Network South AfricaDeloitte Network South AfricaLegal structure and ownershipDeloitte & Touche South Africa is connected to theDeloitte network through the Deloitte Pan African Trust, amember firm of Deloitte Touche Tohmatsu Limited.Deloitte & Touche South Africa is referred to throughoutthis report as “Deloitte South Africa”, and Deloitte PanAfrican Trust is referred to throughout this report as“Deloitte Africa”. Deloitte Africa holds practice rights toprovide professional services using the “Deloitte” namewhich it extends to Deloitte entities within its territory,comprised of practice offices in Botswana, Burundi,Ghana, Kenya, Malawi, Mozambique, Namibia, Nigeria,South Africa, Tanzania, Uganda, Zambia, Zimbabwe andterritorial rights over Ethiopia, Lesotho, Rwanda andSwaziland.Deloitte South Africa is authorised to serve as an auditorfor clients in South Africa, under IRBA registration number902276. Our audit firm operates as a partnership and isestablished under South African law, with the head officeregistered at 5 Magwa Crescent, Waterfall City, Waterfall,Johannesburg.Network descriptionThe Deloitte networkThe Deloitte network is a globally connected network ofmember firms and their affiliates operating in more than150 countries and territories across the world. Theseseparate and independent member firms operate under acommon brand.5Deloitte Touche Tohmatsu Limited (DTTL or DeloitteGlobal)Deloitte Touche Tohmatsu Limited is a UK privatecompany limited by guarantee incorporated in Englandand Wales. DTTL serves a coordinating role for itsmember firms and their affiliates by requiring adherenceto policies and protocols with the objective of promotinga consistently high level of quality, professional conductand service across the Deloitte network. DTTL does notprovide professional services to clients, or direct, manage,control or own any interest in any member firm or anymember firm’s affiliated entities.“Deloitte” is the brand under which approximately312,000 dedicated professionals in independent firmsthroughout the world collaborate to provide audit &assurance, consulting, financial advisory, risk advisory, taxand related services to select clients. These firms aremembers of DTTL. DTTL, these member firms and each oftheir respective related entities form the “Deloitteorganization”. Each DTTL member firm and/or its relatedentities provides services in particular geographic areasand is subject to the laws and professional regulations ofthe particular country or countries in which it operates.Each DTTL member firm is structured in accordance withnational laws, regulations, customary practice, and otherfactors, and may secure the provision of professionalservices in its respective territories through relatedentities.

2020 Transparency Report Deloitte Network South AfricaNot every DTTL member firm or its related entitiesprovides all services, and certain services may not beavailable to attest clients under the rules and regulationsof public accounting. DTTL, and each DTTL member firmand each of its related entities, are legally separate andindependent entities, which cannot obligate or bind eachother in respect of third parties. DTTL and each DTTLmember firm, and their respective related entities, areliable only for their own acts and omissions, and not thoseof each other. The Deloitte organization is a globalnetwork of independent firms and not a partnership or asingle firm. DTTL does not provide services to clients.In accordance with the best traditions of corporategovernance, we insist on a separation between the boardof partners and directors and executive management. Thestrength and effectiveness of a Board is also dependenton the experience and diversity of the Board’s members.The average number of years as partner of our Board is15.4 years and the average age of our Board is 49.5 years;this is indicative of the depth of experience of the Board.Deloitte South Africa: governance – leadership in actionDeloitte South Africa is governed by the Deloitte AfricaBoard, which is constituted by the firm’s governanceagreements. Deloitte South Africa is a partnership thatconsists of 242 partners and directors as at the end ofAugust 2020 who are jointly and severally liable for thepartnership. Partners and directors are effectively theshareholders in the business, of which black voting rightsunder the element of ownership currently constitute42.98%. to oversee the development and implementation ofstrategyThe board of partners and directorsThe board of partners and directors is constituted interms of the partnership agreement and is elected bypartners and directors every three years. The partnershipagreement provides for a basis of election, which isdesigned to ensure that the interests of all partners anddirectors are represented on the board and that provisionis made for external viewpoints with appropriateemphasis on current strategic initiatives.Our newly elected Board serving for the termcommencing on the 1st of September 2020 includesfemale representation at 35% and 69% of our SouthAfrican Board members are Black. This is a wonderfulachievement which demonstrates our ongoingcommitment to Women’s Advancement andTransformation in the firm.6Our board of partners and directors regards its primaryresponsibilities as fourfold: to approve the corporate vision and mission to ensure ethical behaviour and legal compliance to select, monitor, evaluate and compensate thefirm’s CEO.

2020 Transparency Report Deloitte Network South AfricaDeloitte Africa Board7Lwazi BamChief Executive OfficerEx-officioSihlalo JordanDeputy Chief ExecutiveOfficer Ex-officioRuwayda RedfearnChairOlufemi AbegundeDeputy ChairWest AfricaProf. Njabulo NdebeleIndependent NonExecutiveProf. Pat UtomiIndependent NonExecutiveDoreen MboghoEast AfricaOduware UwadiaeWest AfricaPam MaharajSouthern AfricaNina le RicheSouthern AfricaZama DlaminiSpecialist MemberEric TshabalalaSpecialist MemberMike JarvisChief Operating OfficerEx-officioMurray DicksReputation & RiskLeaderEx-officioRik VanpeteghemEMEA ManagingPartner & DTTLObserverEshak HarunaniEast AfricaAlice TemboSouthern AfricaNazeer EssopSouthern AfricaAlex GwalaSouthern AfricaGraeme BerrySouthern Africa