A u d i t of E q u i t y : In t e r n a l C o n t r o l M e a s u r e s an d Su b s ta n tiv e

Pr o c e d u r e s

P ho t o ow n e d by ht t p : / / w w w . o a g . g o v t . n z /

I nt e r n a l Co n t r o l Me a s u r e s fo r Eq u i t y / S h a r e h o l d e r 's Eq u i ty

1. In t e r n a l co n t r o l me a s u r e s re g a r d i n g th e iss u a n c e of sh a r e ce r t i f i c a t e s an d p ro p e r a cc o u n t i n g fo r

tra n s f e r s an d re g i s t r a t i o n of sh a r e s sh o u l d be e s t a b li s h e d . On e of th e s e me a s u r e s is th e app o i n tm e n t of a
sh a r e an d tra n s f e r age n t or an in d e p e n d e n t re g i s t r a r .

2. Sh a r e ce r t i f ic a t e s sh o u l d be se r i a l ly p re n u m b e r e d b y th e p rin t e r and th a t th e a u t h o r it y fo r sig n in g an d

iss u in g th e ce r t i f i c a t e s be d e s ig n a t e d b y th e boa rd of dir e c t o r s .

3. As in d i v i d u a l ce r t i f ic a t e s a re iss u e d , co r r e s p o n d i n g re c o r d s of th e ce r t if i c a t e s sh o u l d be p re p a r e d
co n t a in in g th e na m e and ad d re s s of th e sh a r e h o ld e r s an d th e nu m b e r of sh a r e s iss u e d to e a c h .

4. Ca n c e ll e d ce r t i f i c a t e s sh o u ld be mu t i l a t e d and an y nec e s s a ry do c u m e n ta r y st a m p s sh o u l d be at t a c h e d
to th e ca n c e ll e d ce r t i f i c a t e s .

5. En t ri e s fo r th e sh a r e iss u a n c e s and tra n s f e r s sh o u l d be ma d e by a pe rs o n wh o doe s not ha v e au th o r i t y

to sig n and iss u e ce r t i f ic a t e s .

Su b s ta n ti v e Au d i t Pr o c e d u r e s

Ex i s t e n c e : Re c o r d e d eq u i ty ac c o u n t s e xi s t

1. O b t a in sc h e d u l e s of sh a r e h o ld e r ' s equ it y a cc o u n t s and re c o n c i l e to th e g e n e r a l le d g e r b a la n c e s .

2. Re v i e w aut h o r iz a t io n and te r m s of sh a r e iss u e s .

3. Co n f ir m sh a r e s ou ts ta n d i n g wi t h re g i s t r a r on sh a r e an d tra n s f e r age n t .
4. In s p e c t sh a r e ce r t i f i c a t e bo o k .

5. In s p e c t ce r t if i c a t e s of sh a r e s sh e l d in tre a s u r y .

Co m p l e t e n e s s : A ll e q u it y ac c o u n ts a re re c o r d e d
6. In a d d i t i o n to th e ab o v e me n t i o n e d p ro c e d u r e s , pe rf o r m an a ly t ic a l re v ie w p ro c e d u r e s .

Ri g h t s and o b l ig a t i o n s : th e en ti ty ha s th e aut h o r i ty to e xe c u t e th e sh a r e h o ld e r ' s equ it y tra n s a c t i o n s

7. Re v i e w a rt i c l e s of in c o r p o r a t io n and b y la w s .
8. Ma k e in q u i r ie s of le g a l co u n s e l.

Va l u a ti o n an d allo c a t io n : Sh a r e h o l d e r 's eq u i ty b a la n c e s a re sh o w n at app r o p r ia t e am o u n t s

9. Vo u c h sh a r e ca p it a l e n t r i e s , div i d e n d en t rie s an d en t rie s to re t a i n e d ea r n in g s .

Pr e s e n ta ti o n an d dis c l o s u r e : Sh a r e h o l d e r 's e q u it y a cc o u n t s a re p ro p e r l y p re s e n t e d an d ade q u a t e ly
dis c lo s e d in th e fin a n c i a l st a t e m e n t s .

10 . Re v i e w fin a n c i a l st a t e m e n t s and pe rf o r m a n a l y t i c a l p ro c e d u r e s to det e r m in e wh e t h e r a cc o u n t s a re

cla s s i f i e d an d dis c l o s e d in t he fin a n c i a l st a t e m e n t s in a cc o r d a n c e wi t h GA A P .

11 . Re v i e w mi n u t e s of boa r d of dir e c t o r s ' an d sh a r e h o ld e r s ' me e t in g s fo r sh a r e op ti o n s an d div i d e n d

re s t r i c t i o n s .