Page 92 - S P Setia Annual Report 2016
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90    S P Setia Berhad Group                                 Our Business | Our Performance Review | Our Leadership and People
                Annual Report 2016                                        | Our Achievements and Accolades | Our Sustainability Statement
                                                                         | Our Governance | Our Financial Statements | Other Information

          Audit Committee Report


          Noraini Binti Che Dan (Chairman & Independent Non-Executive Director)
          Philip Tan Puay Koon (Independent Non-Executive Director)
          Dato’ Azmi Bin Mohd Ali (Non-Independent Non-Executive Director)

          Two-thirds of the members of the Audit Committee (“AC”) are Independent Non-Executive Directors. Puan Noraini binti Che Dan, who is
          the Chairman of the AC, is a member of the Malaysian Institute of Accountants and Malaysian Institute of Certified Public Accountants. The
          composition of the AC is in compliance with Paragraph 15.09 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad
          (“Listing Requirements”). Details of the AC members’ attendance at the AC meetings held during the financial year ended 31 December 2016
          (“FY2016”) are disclosed on page 75 in the Corporate Governance Statement of this Annual Report.  For more information.


          The Terms of Reference (“TOR”) of the AC are available for reference on the Company’s website at:


          The AC met six (6) times during FY2016. The President and Chief Executive Officer, Deputy President and Chief Operating Officer, Chief
          Financial Officer, Group Financial Controller, Chief Internal Auditor and External Auditors attended the meetings, where applicable, together
          with the AC members.

          The activities of the AC for FY2016 with regard to the matters relating to the financial statements of the Company and External Auditors were
          as follows:

          (a)   Reviewed the quarterly financial results announcements and the year-end financial statements of the Group prior to the Board of
              Directors of the Company (“Board”)’s approval, focusing particularly on:

              •    the overall performance of the S P Setia Group (“Group”), which included among others, sales, method of recognition of revenue
                   and profit, land held for property development, cashflow position, amount of receivables and payables and level of gearing;
              •    the prospects for the Group;
              •    the changes in and implementation of major accounting policies and practices and prior year adjustments; and
              •    compliance with accounting standards and other legal requirements.

          (b)   Discussed significant accounting and auditing issues in respect of the financial statements of the Group for the financial period ended
              31 December 2015 with the External Auditors and assessed the actions and procedures taken by the External Auditors in respect of those

          (c)   Reviewed the performance of the External Auditors, guided by the External Auditors Policy and independence of the External Auditors,
              and recommended their re-appointment to the Board. The assessment was done in conjunction with the Group Financial Controller
              via a questionnaire where performance of the External Auditors was rated based on a five-point scale. Areas of performance review
              included the quality of service rendered, sufficiency of resources, level of communication and interaction of the audit team and
              independence, objectivity and professionalism of the audit team. Upon conclusion of the audit, the External Auditors had reconfirmed
              to the AC their independence in carrying out the audit of the financial statements of the Company for the financial period ended
              31 December 2015 vide the report of audit results submitted to the AC as well as confirmation obtained at the AC Meeting.

              The Board had recommended the re-appointment of Messrs Ernst & Young as External Auditors of the Company for the financial year
              ended 31 December 2016 at the Company’s 41st Annual General Meeting held on 18 May 2016, which was approved by the shareholders
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