The Audit Committee assists the Board by
providing an objective review of the effectiveness
and efficiency of the Group’s internal control,
risk management and governance framework. It
comprises six (6) Non-Executive Directors, four
(4) of whom are Independent Non-Executive
Directors. The Chairman of the Audit Committee
is a qualified accountant as prescribed by
the Malaysian Institute of Accountants. The
composition and the primary responsibilities of
the Audit Committee are set out in the Report of
the Audit Committee on pages 82 to 87 of this
Annual Report.
The Audit Committee met five (5) times during
the financial year ended 30 June 2011. The
Chairman of the Audit Committee meets
independently, at least twice a year, with the
external auditors. The activities carried out by
the Audit Committee during this period are set
out in the said Report of the Audit Committee.
In presenting the quarterly and annual financial
statements to shareholders and investors,
the Board is committed to providing a clear,
balanced and understandable assessment of
the Group’s financial position and prospects.
The Board, assisted by the Audit Committee,
oversees the financial reporting of the Group.
The Audit Committee reviews the Group’s
annual and interim financial statements and
the appropriateness of the Group’s accounting
policies and the changes to these policies to
ensure that these financial statements comply
with accounting standards and regulatory
requirements.
The Chairman’s message and the reviews
from the Managing Director and the Finance
Director in this Annual Report provide
additional analysis and commentary on the
state of the Group’s business. The Statement
by Directors pursuant to Section 169 of the
Companies Act, 1965 is set out on page 141
of the Financial Statements section of this
Annual Report.
The Board acknowledges its responsibilities
for the Group’s system of internal control
covering not only financial controls but also
operational and compliance controls as well as
risk management. The internal control system
involves each business and key management
from each business, including the Board, and
is designed to meet the Group’s particular
needs and to manage the risks to which it is
exposed. The system can therefore only provide
reasonable, and not absolute, assurance against
material misstatement or loss.
The Group’s Internal Audit provides independent
and objective reports on the Group’s
management, records, accounting policies and
controls to the Audit Committee. The internal
audits include evaluation of the processes by
which risks are identified, assessed and managed
and ensure that controls which are instituted
are appropriate and can effectively address
acceptable risk exposures. The Group’s Internal
Audit also ensures that recommendations
to improve controls are followed through
by Management.
The Statement of Internal Control, which
provides an overview of the state of internal
controls within the Group, is presented on pages
88 to 91 of this Annual Report.
| Relationship with External Auditors |
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The Board through the Audit Committee has
established a transparent and professional
relationship with the Group’s external auditors.
The Audit Committee has explicit authority to
communicate directly with external auditors.
The Audit Committee meets with the external
auditors at least twice a year to discuss their
audit plan and audit findings in relation to the
Group’s financial statements. Prior to some Audit
Committee Meetings, private sessions between
the Audit Committee and the external auditors
were held without the presence of the Executive
Directors, Management and the Head of Internal
Audit to discuss the audit findings and any other
observations they may have during the audit
process. In addition, the external auditors are
invited to attend the AGM of the Company and
are available to answer shareholders’ queries
on the conduct of the statutory audit and the
preparation and content of their audit report.
The Audit Committee is responsible for
approving audit and non-audit services provided
by the external auditors. In approving such
services, the Audit Committee ensures that the
independence and objectivity of the external
auditors are not compromised.
Further information on the role of the Audit
Committee in relation to the external auditors is
stated on pages 82 to 87 of this Annual Report.
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