Statistics Act, 1999
R 385
Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Verification Manual12. Materiality and Verification Risk |
12.1 | The Verification Agency shall consider materiality and the risk of misstatement when planning and performing verification. |
12.2 | The Verification Agency shall consider materiality when determining the nature, timing and extent of evidence-gathering procedures and shall base the materiality on the measured entity's underlying information which determines the individual scores for each Scorecard Element. |
12.3 | Materiality is considered in the context of quantitative and qualitative factors affecting the Scorecard Elements. |
12.4 | Materiality is considered qualitatively in respect of: |
12.4.1 | Ownership - voting rights and economic benefits to black shareholders; |
12.4.2 | Management - board participation and those appointed in top management; and |
12.4.3 | Employment equity in respect of black persons appointed to senior, middle and junior management positions. |
12.5 | Materiality is considered quantitatively in the context of the underlying information expressed in rand values (to which monetary sampling approaches may be applied) for: |
12.5.1 | Skills development spend; |
12.5.2 | Preferential procurement in respect of Procurement Suppliers who claim to be Black Owned and thereafter B-BBEE Procurement Spend relative to total measured procurement spend for the period; |
12.5.3 | Enterprise Development Qualifying Contributions; and |
12.5.4 | Socio-Economic Development Qualifying Contributions. |