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annual report 2014
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3.
SUMMARY OF ACTIVITIES (cont’d)
(c)
External Audit
• Reviewed with the External Auditors the scope of work and audit plan for the year, the results of the
annual audit, the audit report and management letter including Management’s responses to the findings
of the External Auditors, as well as the impact of new or proposed changes in accounting standards and
regulatory requirements and the extent of compliance.
• Considered the re-appointment of External Auditors (including assessment of their independence and
objectivity) and their remunerations, and made appropriate recommendation to the Board.
• Met twice with the External Auditors without the presence of the Executive Directors and Management
where it was confirmed that full assistance was given by Management and employees and there was
no restriction to the scope of audit.
(d) Other Activities
• Reviewed the related party transactions of the Group, to ensure that they are based on terms favourable
to the Group.
• Reviewed any significant or unusual events.
4.
INTERNAL AUDIT FUNCTION
Total Advisors Sdn Bhd (“the Internal Auditors”), an external professional firm, has been engaged by the Board to
carry out the internal audit function during the financial year under review.
The Internal Auditors report directly to the Committee. The primary role of the internal audit function is to review the
effectiveness of the Group’s systems on internal control and this is performed with impartiality, proficiency and due
professional care. Total internal audit fees incurred in respect of financial year ended 31 December 2014 amounted
to RM54,000.
Internal audit function adopts a risk-based auditing approach by focusing on reviewing identified high risk areas
for compliance with control policies and procedures, identifying business risk which have not been appropriately
addressed and evaluating the adequacy and integrity of controls. Internal audit function assists the Committee in
discharging its duties and responsibilities with respect to the adequacy and integrity of the systems of internal control
within the Group.
Activities carried out by the Internal Auditors during the financial year under review are summarised below:
• Performed independent review on the identified operational functions and processes of the Group, which
include Management Information System/ Information Technology, Accounts and Finance, Security and Access
(Physical) and Hostel Management; and issued report on the results of the internal audit review and highlighted
areas for improvement with recommendation of remedial action to the Management.
• Performed independent review on the corporate governance and risk management framework of the Group,
and issued report on the status of compliance with recommendation for improvement.
• Conducted follow-up reviews on issues highlighted in previous audits and assessed the progress of the
implementation of the improvement action plans.
• Tabled the relevant internal audit reports directly to the Committee and discussed the findings with the
Committee during the Committee meetings.
Audit Committee Report (Cont’d)
