Page 93 - S P Setia Annual Report 2016

 

 

 

 

 

Page 93 - S P Setia Annual Report 2016
P. 93

S P Setia Berhad Group                                 Our Business | Our Performance Review | Our Leadership and People   91
          Annual Report 2016                                        | Our Achievements and Accolades | Our Sustainability Statement
                                                                   | Our Governance | Our Financial Statements | Other Information




                                                                                          Audit Committee Report


          (d)   Held two (2) private sessions with the External Auditors without the presence of the Executive Director and Management. There were
              no areas of concern that warranted escalation to the Board.

          (e)   Reviewed the audit planning memorandum for FY2016 with the External Auditors including the adequacy of the external audit team
              and audit fees. The areas of audit emphasis and action plans were discussed at length with the External Auditors and the Management
              to ensure that adequate actions were carried out to ascertain compliance with the relevant accounting standards, prior to finalising the
              audited financial statements of the Company.

          (f)   Kept abreast of changes in reporting requirements, namely, the revised auditor reporting standards particularly on the Key Audit Matters
              report and Going Concern requirements, financial reporting and regulatory developments, so as to ensure that disclosure requirements
              imposed by relevant bodies were complied with by the Group.

          (g)   Received the declaration of independence by the External Auditors in respect of the audit for FY2016.

          (h)   Reviewed the amount of audit and non-audit fees paid or payable by the Company and its subsidiaries to the External Auditors and their
              affiliated companies for FY2016 and recommended the amount to the Board for approval. The total amount of audit and non-audit fees
              for FY2016 was compared against the previous year and any increase or decrease in fees was appropriately justified by the Management
              taking into consideration the level of activities of the Group, inflationary factors and reference to the fees payable by other companies
              in the same industry.

          The activities of the AC for FY2016 with regard to the matters relating to the internal audit function, internal controls and operations were
          as follows:

          (a)   Reviewed the Audit Committee Report and Statement of Risk Management and Internal Control for inclusion in the Annual Report
              2015.

          (b)   Reviewed the reports prepared by the Internal Auditors on the state of internal control of the Group. The AC also reviewed and
              approved the three (3) year internal audit plan from 2016, 2017 and 2018.

          (c)   Reviewed the related party transactions entered or to be entered into by the Company. Reviewed the procedures for recurrent related
              party transactions for purposes of ensuring that the processes and controls were in place to ensure that recurrent related party
              transactions were not more favourable to the related parties than those generally available to the public and were not to the detriment
              of the minority shareholders.

          (d)   Reviewed the transfer pricing policies governing inter-company transactions to establish that the significant inter-company transactions
              of the Group under review complied with the transfer pricing guidelines, which was confirmed by an external independent consultant.

          (e)   Reviewed its TOR to ensure that it had performed its functions in accordance to the TOR and proposed changes, where necessary,
              taking into consideration the changes to the Listing Requirements and recommended the changes to the Board for approval.

          (f)   Reviewed the impact of Goods and Services Tax on the performance of Corporate Financial Guarantees to the subsidiaries of the
              Company for recommendation of appropriate actions to be undertaken by the Group.

          (g)   Reviewed, in co-operation with the Risk Management Committee, various policies for adoption and implementation by the Management
              to further strengthen internal controls of the Group and recommended the policies to the Board for approval.

          (h)   Reviewed the rationalisation of dormant or inactive companies within the S P Setia Group of Companies with the aim of optimising the
              Group’s corporate structure and recommended the same to the Board for approval.

          (i)   Reviewed the adequacy of the internal audit function and involved in the selection and recommendation for the appointment of critical
              position in the internal audit function.
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