The Auditor-General identified the following: The purchase of the business as disclosed in note 30 was not correctly accounted for in accordance with the requirements of International Financial Reporting Standards(IFRS 3), Business Combination and the SA Standards of GRAP,GRAP 6, consolidated and separate financial statements. This resulted in accounts payable being understated by R3 382 597 (2010: R3 209 505), cash and cash equivalents overstated by R455 305 (2010: understated by R3 191 565) and the accumulated surplus being understated by