Eng - IOI Group

ACTIVITIES cont’dviiReview of the audit reports presented by Internal Audit Department on findings and recommendations andmanagement’s responses thereto and ensure that material findings are adequately addressed by management.viii Review of the related party transactions entered into by the Group.ixxReview and assess the risk management activities of the Group.Review of the extent of the Group’s compliance with the relevant provisions set out under the Malaysian Code onCorporate Governance for the purpose of preparing the Corporate Governance Statement and Statement on InternalControl pursuant to the KLSE Listing Requirements.Number of Meetings and Details of Attendance8 Audit Committee meetings were held during the financial year ended 30 June 2003. The attendance record of eachmember is as follows:Audit Committee MembersTotalNumber ofMeetingsNumber ofMeetingsAttendedDatuk Hj Mohd Khalil b Dato’ Hj Mohd Noor 8 8Datuk Khalid b Hj Husin 8 7Chan Fong Ann 8 8Dato’ Yeo How 8 8INTERNAL AUDIT FUNCTIONThe annual Internal Audit plan is approved by the Committee at the beginning of each financial year.The Internal Audit Department performs routine audit on and reviews all operating units within the Group, with emphasis onprincipal risk areas. Internal Audit adopts a risk based approach towards planning and conduct of audits, which is partly guidedby the Corporate Risk Management framework. Impact on IOI’s vision is taken into consideration in determining the risk level asa holistic approach in contributing to the achievement of the Group’s objective and enhancing shareholders’ value.106 audit assignments were planned and completed during the financial year on various operating units of the Groupcovering plantation, properties, hotels and other sectors. Audit reports were issued to the Audit Committee and Board ofDirectors, incorporating findings, recommendations to improve on the weaknesses noted in the course of the audits andmanagement comments on the findings. An established system has been in place to ensure that all remedial actions hadbeen taken on the agreed audit issues and recommendations highlighted in the audit reports. Significant issues andmatters unsatisfactorily resolved would be highlighted to the Audit Committee quarterly.77IOI Corporation BerhadAnnual Report 2003