Ombud Council AR 2026

PART F: FINANCIAL INFORMATION

Final materiality 7. The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error, and they are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the separate financial statements. 8. Our determination of materiality is a matter of professional judgement and is affected by our perception and understanding of the financial information needs of intended users, which is the quantitative and qualitative factors that determine the level at which relevant decisions taken by users would be affected by a misstatement. These factors helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the separate financial statements as a whole. 9. Based on our professional judgement, we determined final materiality for the separate financial statements as follows: Final materiality amount R270 000 Basis for determining materiality Responsibilities of the Accounting Authority for the financial statements 10. The Accounting Authority, is responsible for the preparation and fair presentation of the financial statements in accordance with Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act (PFMA) and for such internal control as the Accounting Authority determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. 11. In preparing the separate financial statements, the Accounting Authority is responsible for assessing the entity’s ability to continue as a going concern; disclosing, as applicable, matters relating to going concern; and using the going concern basis of accounting unless the Accounting Authority either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibilities for the audit of the separate financial statements 12. Our objectives are to obtain reasonable assurance about whether the [financial statements/ consolidated financial statements/ consolidated and separate financial statements] as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements. 13. A further description of our responsibilities for the audit of the separate financial statements is included in the annexure to this auditor’s report. This description, which is located at page 72 to 74, forms part of our auditor’s report. 1% of Revenue, as disclosed in note 11 to the financial statements, adjusted for non -recurring items that are not representative of normal business/activity levels. Revenue is an appropriate quantitative indicator of materiality as it is a key indicator of the operational performance and any misstatements in revenue can directly impact the perception of business performance and viability. Rationale for benchmark applied

Ombud Council 2025/26 Annual Report

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