Download PDF - ChartNexus

Audit Committee Report (cont’d)
Summary of activities during the financial year under review
The Committee carried out its duties in accordance with its terms of reference during the financial year under review. The main
activities undertaken by the Committee were as follows:
• Reviewed with the External Auditors:
(i) Scope of work and audit plan for the financial year prior to the commencement of audit fieldwork;
(ii) The Annual Report and the audited financial statements of the Group prior to submission to the Board for consideration
and approval;
(iii) The management letter, including Management’s response and the evaluation of the system of internal controls;
• Met with the external auditors twice (2) during the financial year without the presence of any Executive Board members and
Senior Management, to discuss problems and reservations arising from the interim and final audits, if any, or any other matter
the External Auditors may wish to discuss;
• Considered and recommended to the Board on the re-appointment of the External Auditors and the audit fees payable to
the External Auditors for the Board’s submission to shareholders for approval at the Annual General Meeting;
• Reviewed the independence, objectivity and effectiveness of the External Auditors and the services provided, including nonaudit
services. Non-audit fees totaling RM16,650 were paid to the External Auditors during the financial year for the provision
of advisory services in respect of the review of Statement on Internal Control and other review works;
• Reviewed the quarterly unaudited financial results announcements prior to recommending them to the Board for consideration
and approval for release to Bursa Malaysia Securities Berhad and Singapore Exchange Securities Trading Limited. The review
and discussions were conducted with the Group Chief Executive Officer, Group Chief Financial Officer and other Senior
Management staff;
• Reviewed the Group Internal Audit function’s resource requirements, adequacy of plan, functions and scope for the financial
year under review;
• Reviewed the performance and competency of the Group Internal Audit function;
• Reviewed the internal audit programmes, processes and reports, which highlighted the audit issues, recommendation and
Management’s response. Discussed with Management and ensure appropriate actions were taken to improve the system of
internal controls based on improvement opportunities identified in the internal audit reports;
• Reviewed the adequacy and effectiveness of the governance and risk management processes as well as the internal control
system through risk assessment reports from Group Risk Management Committee and the internal audit function. Significant
risk issues were summarised and communicated to the Board for consideration and resolution;
• Reviewed the risk assessment updates for significant operating subsidiaries and assessed the appropriateness of the
mitigation action plans to address the principal risks;
• Reviewed the Annual Report and the audited financial statements of the Group prior to submission to the Board for its
consideration and approval. The review was to ensure that the audited financial statements were drawn up in accordance
with the provisions of the Companies Act, 1965 and the applicable approved Financial Reporting Standards for the entities
other than private entities issued by the MASB. Any significant issues resulting from the audit of the financial statements by
the External Auditor were deliberated; and
• Reviewed the related party transactions and conflict of interest situations that may arise within the Company or the Group.
MALAYSIA SMELTING CORPORATION (43072-A) • ANNUAL REPORT 2011 63