SARAWAK PLANTATION BERHAD
|
33
|
Annual Report 2014
Audit Committee’s Report
2. Summary of Activities
(continued)
n
Reviewed the quarterly results and year end financial statements of the Group prior to the approval
by the Board;
n
Reviewed the findings of the external auditors in relation to audit and accounting issues which
arose from the audit and updates of new developments on accounting standards issued by the
Malaysian Accounting Standard Board (MASB);
n
Reviewed all audit reports presented by the internal auditors, their findings and recommendations
with respect to system and control weaknesses;
n
Ensured the adequacy of the scope, functions and resources of the Internal Audit Department and
that it had the necessary authority to carry out its work; and
n
Evaluated consultants and recommended their appointment to assess where special technical
expertise is required as directed by the Board.
3. Internal Audit Function
The Group has an internal audit function whose primary responsibility is to undertake regular and
systematic reviews of the system of internal controls so as to provide reasonable assurance that this
system continues of operate satisfactorily and effectively within the Group. The internal audit function
adopts a risk-based audit methodology which is aligned to the risks of the Group to ensure that
relevant controls addressing those risks are reviewed on a rotational basis.
The activities carried out by the internal audit include, amongst others, to review of the adequacy of
risk management, system of internal control for effectiveness and efficiency, assessment of compliance
with established rules, guidelines, laws and regulations, review of reliability and integrity of information
and means of safeguarding assets.
The Internal Audit Manager is responsible for enhancing quality assurance and improvement programme
of the internal audit function. In order to achieve this, the monitoring of its effectiveness is done through
internal self-assessment tools and independent external assessment. The results will then be
communicated to the Committee. The Internal Audit Manager reports directly to the Chairman of the
Committee.
The total costs incurred for the Group’s internal audit function in respect of the financial year ended
31 December 2014 amounted to RM1,297,706.
4. Terms of Reference
The terms of reference of the Committee are as follows:
n
Provides assistance to the Board in fulfilling its fiduciary responsibilities relating to corporate
accounting and reporting practices for the Group;
n
Maintains through regularly scheduled meetings, a direct line of communication between the Board
and the external and internal auditors;
n
Avails to auditors a private and confidential audience at any time they desire and to request such
audience through the Chairman of the Committee with or without the prior knowledge of the
Management; and
n
Acts upon the Board of Directors’ request to investigate and reports on any issues or concern with
regards to the management of the Group
In addition, the Committee is authorised to carry out duties as mentioned below and also has unrestricted
access to all of the Group’s records, properties and personnel to enable them to discharge their duties.
