2004 - Hiap Teck Venture Berhad

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