GPERAK-AnnualReport2009 (1MB).pdf - Bursa Malaysia

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AUDIT COMMITTEE REPORT (Cont’d)
annual report 2009 | Gula peraK BerHaD (8104-X)
TERMS OF REFERENCE FOR THE AUDIT COMMITTEE (Cont’d)
TERMS OF REFERENCE
Responsible to the Board of Directors for the following in its role to ensure proper management of the business operations in
compliance with statutory obligations, policies, procedures, regulations and prudent business practices:-
1. To consider the appointment of the external auditor, the audit fee and any question of resignation or dismissal.
2. To review with external auditor before the audit commences the nature and scope of the audit and their audit plan.
3. To review the quarterly and year-end financial statements of the Company, focusing on:
- any changes in accounting policies and practices;
- significant adjustments arising from the audit;
- the going concern assumption;
- compliance with accounting standards and other legal requirements.
4. To discuss problems and reservations arising from the interim and final audits and any matter the auditor may wish to discuss
(in the absence of the management wherever necessary).
5. To review the external auditor’s management letter and management’s response.
6. To do the following :
- establish an internal audit function which is independent of the activities it audits and also ensure the internal audit
function reports directly to the Audit Committee;
- review the adequacy of the scope, functions and resources of the internal audit function and that it has the necessary
authority to carry out its work;
- review the internal audit programme and results of the internal audit process and where necessary to ensure that the
appropriate action is taken on the recommendations of the internal audit function;
- review any appraisal or assessment of the performance of members of the internal audit function;
- inform itself of resignations of internal audit staff members and provide the resigning staff member an opportunity to
submit his reasons for resigning.
7. To review the adequacy and integrity of the Company’s internal control systems and management information systems,
including systems for compliance with applicable laws, rules, directives and guidelines.
8. To propose best practices on disclosure in financial results and annual reports of the Company in line with the principles set
out in the Malaysian Code of Corporate Governance, other applicable laws, rules, directives and guidelines.
9. To propose that the management has in place an adequate system of risk management to safeguard the Company’s
assets.
10. To consider any related party transactions that may arise within the Company or Group;
11. To consider the major findings of internal investigations and management’s response;
12. To consider and examine any other matters as defined by the Board.