Page 80 - S P Setia Annual Report 2013
P. 80

78 | corporate Governance S P SETIA BERHAD GROUP Annual Report 2013





AUDIT COMMITTEE REPORT (CONT’D)









vi. To do the following, in relation to the internal audit function:

• review the adequacy of the scope, functions and resources of the internal audit function, and that it has the necessary authority to
carry out its work;
• review the internal audit programme and results of the internal audit process and, where necessary, ensure that appropriate actions
are taken on the recommendations of the internal audit function;
• review any appraisal or assessment of the performance of members of the internal audit function;
• approve any appointment or termination of senior staff members of the internal audit function; and
• take cognisance of resignations of internal audit staff members and provide the resigning staff member an opportunity to submit
reasons for resigning.

vii. To review any related party transactions that may arise within the Company or Group.

viii. To consider other related matters, as defned by the Board.

summary of activities of the committee DurinG the year

The Audit Committee met four times during the fnancial year ended 31 October 2013. The activities of the Audit Committee for the fnancial
year were as follows:
(a) Reviewed the quarterly fnancial results announcements and the year end fnancial statements of the Group prior to the Board of Directors’
approval, focusing particularly on:
- the overall performance of the Group;
- the prospects for the Group;
- the changes and implementation of major accounting policies and practices; and
- compliance with accounting standards and other legal requirement.
(b) Discussed signifcant audit fndings in respect of the fnancial statements of the Group with the External Auditors;
(c) Reviewed the reports prepared by the Internal Auditors on the state of internal control of the Group; and
(d) Reviewed the related party transactions entered into by the Company and the Group.

internal auDit function

The Group has an in-house Internal Audit Department that reports directly to the Audit Committee. The Committee is aware of the fact that
an independent and adequately resourced internal audit function is essential to assist in obtaining the assurance it requires regarding the
effectiveness of the system of internal controls.
The internal audit activities carried out for the fnancial year include, inter alia, the following:

- Ascertained the extent of compliance with the established Group policies, procedures and statutory requirements;
- Reviewed the system of internal controls and key operating processes based on the approved annual plan by adopting a risk-based
approach and recommended improvements to the existing system of controls;
- Reviewed related party transactions.
Arising from the above activities, Internal Audit reports, incorporating the audit fnding, audit recommendation and management response were
issued to the Audit Committee. Follow-up audit was also conducted and the status of implementation on the agreed upon actions plans were
highlighted to the Audit Committee.

The total cost incurred for the internal audit function for the fnancial year ended 31 October 2013 was approximately RM2.25 million.

statement on lonG term incentive Plan (“ltiP”)

The Audit Committee has reviewed and verifed that during the fnancial year ended 31 October 2013, the allocation of shares and options to
the eligible employees of S P Setia Berhad Group had been made in accordance with the eligibility and entitlement criteria determined by the
LTIP Committee and the shares and options have been granted in accordance with the By-Laws.
   75   76   77   78   79   80   81   82   83   84   85