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annual report | 2012 Gunung Capital Berhad (330171-P)
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AUDIT COMMITTEE REPORT (cont’d)
Functions of the Audit Committee (cont'd)
(x) To consider the appointment, the audit fee and resignation or dismissal of the external auditors; and
(xi) To recommend the nomination of a person as external auditors.
SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE
The activities of the Audit Committee during the financial year ended 31 December 2012 include the followings:-
• Reviewed and recommended for Board’s approval on the unaudited quarterly financial results and audited financial
statements;
• Assessed the Group’s financial performance;
• Reviewed the Audit Planning Memorandum and discussed with the External Auditors on their findings and issues arising
from the audits;
• Made recommendations to the Board for re-appointment of External Auditors;
• Reviewed the procedures monitoring recurrent related party transactions within the Group and the renewal of
shareholders’ mandate;
• Reviewed the status of the internal control system of the Group;
• Reviewed the internal audit reports on findings and recommendations and ensuring that material findings are adequately
addressed by the Management;
• Assessed the adequacy of competency of the internal auditing function;
• Reviewed the Audit Committee Report and Statement on Internal Control for inclusion into the Annual Report.
INTERNAL AUDIT FUNCTION
The Audit Committee, in particular, is assisted by the in-house Internal Audit Department who undertake the audit and
compliance functions of the Group. Internal audit focuses on determining whether the controls provide reasonable assurance
of effective and efficient operations, as to reliability and integrity of financial data and reports, and compliance with laws,
regulations and contracts.
The internal auditor has progressively conducted independent and regular reviews to assess the adequacy and effectiveness
of the Group’s internal control systems and ensure that the Group’s policies and operating procedures are complied with.
Audits were carried out on key processes or strategic business units of the Group. The internal auditor also monitored the
effectiveness of administration and financial controls applied and the reliability and integrity of data that was produced
within the Group. Audit findings were presented to the Audit Committee and recommendations were highlighted for
improvements on a quarterly basis.
The total cost incurred for the Group’s internal audit function for the financial year ended 31 December 2012 amounted
to approximately RM134,400.00