Page 94 - S P Setia Annual Report 2016

 

 

 

 

 

Page 94 - S P Setia Annual Report 2016
P. 94

92    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


          INTERNAL AUDIT FUNCTION

          The Group has an in-house independent internal auditing function, Group Internal Audit (“GIA”) that reports directly to the AC. Its principal
          responsibility is to provide objective assurance and consulting activity designed to add value and improve the efficiency and effectiveness
          of the Group’s operations. It helps the Group to accomplish its objectives by bringing a systematic and disciplined approach to evaluate
          and improve the effectiveness of the risk management, internal control and governance processes. GIA also conducts ad hoc assurance
          assignments and special reviews upon request by the AC and Senior Management.

          GIA conducts the audit in accordance with the annual internal audit plan, developed based on a risk-based approach, approved annually by
          the AC. The internal audit scope is then developed based on the approved annual audit plan to focus on the key controls on more significant
          risks to the organisation, and is relied upon to manage risks associated with critical business objectives. It performs risk-based audits and
          reviews on all business units emphasising on high risk areas to evaluate the efficiency and effectiveness of the controls in place to mitigate
          the risks. All major findings and significant control issues and concerns are reported directly to the AC. The GIA also highlights to the
          Management all issues and concerns, and performs follow-up actions.

          During the year, GIA carried out the following activities:

          (a)   Reviewed the system of internal controls and compliance framework based on a risk-based approach as per the approved annual plan
              and provided value added improvements to the existing system on controls.

              For planned engagements, the objectives are aligned to those initially identified and approved during the risk assessment process from
              which the internal audit plan is derived.

              For unplanned engagements, the objectives are established prior to the start of the engagement. After identifying the risk, the procedure
              to be performed and the scope of these procedures are determined.

          (b)   Conducted and completed a systematic analysis of business processes and associated controls, and scheduled and special internal
              audit assignments, focusing on effectiveness of governance, risk and internal controls and providing improvements where necessary.

          (c)   Conducted follow-up procedures to determine the status of Management implementation of issues highlighted in previous audit
              reports and ensured Management actions had been effectively implemented.

          (d)   Reviewed the recurring related parties’ transactions on a quarterly basis in accordance with the guidelines set out in the Circular to
              Shareholders dated 26 April 2016.

          (e)   Reviewed on an ad hoc basis areas where there were concerns that affected financial reporting, internal controls and governance.

          (f)   Reviewed and assessed the Whistleblowing Reports to ensure that all reported cases were thoroughly investigated and appropriate
              actions were taken to address all concerns raised. There were no reports on fraud and irregularities as the reports received were mainly
              general complaints.

              GIA reported areas where internal controls required improvements and recommended action plans to the appropriate level of
              Management for implementation. Significant matters were promptly reported directly to the AC and Senior Management. All internal
              audit activities were performed in-house.

              The total cost incurred for the internal audit function for the FY2016 was approximately RM2.46 million.
   89   90   91   92   93   94   95   96   97   98   99