SARAWAK PLANTATION BERHAD
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Annual Report 2014
Audit Committee’s Report
4. Terms of Reference
(continued)
i. Financial Statements
n
Reviews significant accounting and reporting issues, including complex or unusual transactions and
highly judgmental areas, recent professional and regulatory pronouncements, and understands
their impact on the financial statements.
n
Reviews with management and the external auditors the results of the audit, including any
difficulties encountered.
n
Reviews the annual financial statements and considers whether they are complete, consistent
with information known to committee members and reflect appropriate accounting principles.
n
Reviews other sections of the annual report and related regulatory filings before release and
considers the accuracy and completeness of the information.
n
Reviews with management and the external auditors all matters required to be communicated to
the Committee under generally accepted auditing standards.
n
Understands how management develops interim financial information and the nature and extent
of internal and external auditors’ involvement.
n
Reviews interim financial reports with management and the external auditors before filing with
regulators and considers whether they are complete and consistent with the information known
to committee members.
ii. Internal Control
n
Considers the effectiveness of the Group’s internal control system, including information
technology security and control.
n
Understands the scope of internal and external auditors’ review of internal control over financial
reporting and obtains reports on significant findings and recommendations, together with
management’s response.
iii. Internal Audit
n
Reviews with management and the chief audit executive the charter, activities, staffing and
organisational structure of the internal audit function.
n
Has final authority to review and approve the annual audit plan and all major changes to the plan.
n
Ensures there are no unjustified restrictions or limitations and reviews and concurs in the
appointment, replacement or dismissal of the chief audit executive.
n
At least once per year, reviews the performance of the chief audit executive and concurs with
the annual compensation and salary adjustment.
n
Reviews the effectiveness of the internal audit function, including compliance with The Institute
of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing.
n
On a regular basis, meets separately with the chief audit executive to discuss any matters that
the Committee or internal audit believes should be discussed privately.
