2004 - Hiap Teck Venture Berhad
2004 - Hiap Teck Venture Berhad
2004 - Hiap Teck Venture Berhad
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
6. Audit Committee Report<br />
The Committee shall ensure that an audit committee<br />
report is prepared at the end of each financial year<br />
that complies with subparagraph (7.1) and (7.2)<br />
below:<br />
6.1 The audit committee report shall be clearly<br />
set out in the Annual Report of the<br />
Company;<br />
6.2 The audit committee report shall include<br />
the following:<br />
SUMMARY OF ACTIVITIES<br />
(a) the composition of the Committee,<br />
including the name, designation<br />
(indicating the chairman) and<br />
directorship of the members (indicating<br />
whether the Directors are independent<br />
or otherwise);<br />
(b) the terms of reference of the<br />
Committee;<br />
(c) the number of Committee meetings<br />
held during the financial year end and<br />
details of attendance of each member;<br />
(d) a summary of activities of the<br />
Committee in the discharge of its<br />
functions and duties for that financial<br />
year of the Company; and<br />
(e) the existence of an internal audit<br />
function or activity and where there is<br />
such a function or activity, a summary<br />
of the activities of the function or<br />
activity. Where such a function or<br />
activity does not exist, an explanation<br />
of the mechanism that exist to enable<br />
the Committee to discharge its<br />
functions effectively.<br />
The Audit Committee carried out its duties in accordance<br />
with its terms of reference during the year.<br />
The main activities undertaken by the Committee were<br />
as follows:<br />
➤ Reviewed the quarterly and annual financial<br />
statements of the Company and the Group prior to<br />
submission to the Board of Directors for their<br />
consideration and approval.<br />
➤ Reviewed the internal audit reports and considered<br />
the findings and management’s responses thereto.<br />
➤ Reviewed and discussed with external Auditors the<br />
issues arising from the statutory audit, the audit<br />
report and the management letters including<br />
management’s responses.<br />
➤ Reviewed the Related Party Transactions of the<br />
Group.<br />
INTERNAL AUDIT FUNCTION<br />
The Board acknowledges its responsibility and the<br />
importance of maintaining a sound system of internal<br />
controls.<br />
The internal audit function of the Group is outsourced to<br />
a professional service firm and its function is<br />
independent of the activities or operations of other<br />
operating units. The principal role of the internal audit<br />
function is to undertake independent, regular and<br />
systematic reviews of the internal control systems of the<br />
Group in order to provide a reasonable assurance that<br />
such systems continue to operate satisfactorily and<br />
effectively. It is the responsibility of the internal audit<br />
function to provide the Audit Committee with<br />
independent and objectives reports on the state of<br />
internal control of the various operating units of the<br />
Group. The internal audit reports are reviewed by the<br />
Audit Committee and the Management is responsible for<br />
ensuring that corrective actions on reported weaknesses<br />
are taken within the required time frame. In this regards,<br />
the Audit Committee is pleased to report that there were<br />
no significant adverse finding during the financial year<br />
ended 31 July <strong>2004</strong> that adversely affect the Group’s<br />
reputation or financial position.<br />
During the financial year ended 31 July <strong>2004</strong>, The Audit<br />
Committee convened a total of five (5) meetings. All<br />
members of the Audit Committee attended the meetings.<br />
16 HIAP TECK VENTURE BERHAD