92 | S P SETIA BERHAD GROUP | Annual Report 2014
Internal Audit Function
The Group has an in-house Internal Audit Department known as Governance Advisory Department that reports directly to the AC. The AC 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 financial year included, 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; and
Reviewed related party transactions.
Arising from the above activities, Internal Audit reports, incorporating the audit finding, audit recommendation and management response were
issued to the AC. Follow-up audit was also conducted and the status of implementation on the agreed upon action plans were highlighted to
The total cost incurred for the internal audit function for the financial year ended 31 October 2014 was approximately RM2.32 million.
Statement on Long Term Incentive Plan (“LTIP”)
The second allocation of shares and options to the eligible employees of S P Setia Berhad Group under the LTIP of the Company was made on
31 October 2014. In view thereof, the AC will review and verify such allocation to ensure that it has been made in accordance with the eligibility
and entitlement criteria determined by the LTIP Committee and that the shares and options have been granted in accordance with the By-Laws
in the financial year ending 31 October 2015.
AUDIT COMMITTEE REPORT
IV. Corporate Governance