Download PDF - ChartNexus

Audit Committee Report (cont’d)
Internal Audit Function
The Committee is supported by an in-house Internal Audit function in the discharge of its duties and responsibilities. The Internal
Audit function provides independent assurance on the adequacy and integrity of the risk management, internal control and
governance processes.
Where considered appropriate, the in-house Internal Audit function would procure internal audit services from external consultant
as a means to augment its efforts in conducting internal audit projects and reviews for the Group.
The Group General Manager, Internal Audit, who reports directly to the Audit Committee, is responsible for the regular review
and appraisal of the effectiveness of the risk management, internal control and governance processes within the Group.
A summary of the main activities undertaken by the Internal Audit function during the financial year is as follows:
• Prepared the annual risk-based internal audit plan for the Committee’s approval;
• Carried out internal audits of the Group on a continuous basis to review the adequacy of internal controls in the auditable
areas and to assess consistency in the compliance with the established policies and procedures. Apart from conducting riskbased
internal audits for the Company and its subsidiaries, the Internal Audit function also performed routine and financialbased
audits as part of its programme to cover strategic, operational and financial aspects of the Group’s operations;
• Issued internal audit reports to the Committee on the states of internal control of the various operating units within the Group
and the extent of compliance of the units with the Group’s established policies and procedures, with copies extended to
Management, highlighting deficiencies with the corresponding improvement opportunities. The Group General Manager,
Internal Audit attended the quarterly and ad-hoc Audit Committee meetings and presented reports on areas of audit concern
for the Audit Committee’s deliberation;
• Monitored remedial actions taken by Management in response to recommendations addressing the internal control
deficiencies highlighted in previous cycles of internal audit; and
The total cost incurred for the Internal Audit function for the financial year ended 31 December 2011 is RM746,700
Further details of the activities of the Internal Audit function are set out in the Statement on Internal Control on pages 65 to 66
of this Annual Report.
Date: 26 March 2012.
64
Building on Success: Developing Resources for the Future