The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 40(1)(a) and (b) of the PFMA. Material misstatements of current assets, liabilities and disclosure items identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion. The AG states that the lack of adequate review of the AFS by those charged with governance as a root cause in challenges highlighted regarding the preparation of the Annual Financial Statements.