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Annual Report 2003 www.publicbank.com.my AUDIT COMMITTEE REPORT 2.2 Chairman The Chairman of the Committee shall be approved by the Board of Directors and shall be an independent non-executive director. 2.3 Secretary The Secretary of the Committee shall be the Head of Internal Audit Division. 2.4 Meetings Meetings shall be held not less than four times a year. 2.5 Authority The Committee shall have the authority to: a. seek any information relevant to its activities from employees of Public Bank and the Public Bank Group. b. obtain such independent professional advice as it considers necessary. c. obtain the necessary resources required to carry out its duties. d. have full and unrestricted access to any information and documents pertaining to Public Bank and the Public Bank Group. 2.6 Responsibilities and Duties The Committee shall review and, where appropriate, report to the Board of Directors on the following: a. Risk Management The adequacy and effectiveness of risk management, internal control and governance systems instituted in Public Bank and the Public Bank Group. b. Internal Audit • The adequacy of the scope of the audits conducted by Internal Audit Division, functions and resources of Internal Audit Division and that it has the necessary authority to carry out its work. • The performance of Internal Audit Division. c. External Audit • The external auditors’ audit plans, scope of their audits and their audit reports. • The performance of the external auditors and make recommendations to the Board of Directors on their appointment and remuneration. d. Audit Reports • Internal and external audit reports to ensure that appropriate and adequate remedial actions are taken by management on significant lapses in controls and procedures that are identified. • Significant internal and external audit findings and management’s responses. e. Financial Reporting The quarterly and annual financial statements of Public Bank and the Public Bank Group for recommendation to the Board of Directors for approval, focusing particularly on: • changes in or implementation of new accounting policies and practices; • significant and unusual events; and • compliance with the applicable approved accounting standards and other legal and regulatory requirements. publicbank • 70
publicbank • 71 f. Related Party Transactions Any related party transactions that may arise within Public Bank and the Public Bank Group. g. Other Matters Such other matters as the Committee considers appropriate or as authorised by the Board of Directors. 3. SUMMARY OF ACTIVITIES During the year, the Committee carried out the following activities: 3.1 Financial Results a. Reviewed the quarterly and half-yearly unaudited financial results of Public Bank and the Public Bank Group before recommending them for the approval of the Board of Directors. b. Reviewed the annual audited financial statements of Public Bank and the Public Bank Group with the external auditors prior to submission to the Board of Directors for their approval. The review was, inter-alia, to ensure compliance with: • Provisions of the Companies Act, 1965 and the Banking And Financial Institutions Act, 1989; • Listing Requirements of Malaysia Securities Exchange Berhad; • Applicable approved accounting standards in Malaysia; and • Other legal and regulatory requirements. 3.2 Internal Audit a. Reviewed the annual audit plan to ensure adequate scope and coverage of the activities of Public Bank and the Public Bank Group. b. Reviewed the audit programmes, resource requirements for the year and assessed the performance of Internal Audit Division. c. Reviewed the internal audit reports, audit recommendations made and management’s response to these recommendations. Where appropriate, the Committee has directed action to be taken by management to rectify and improve the system of internal controls and procedures based on the internal auditors’ recommendations and suggestions for improvements. The number of internal audit reports tabled to the Committee during the year was as follows: Type of Audits No. of Reports • Information Systems 13 • Head Office Departments/ Divisions 13 • Branches 164 180 d. Monitored the implementation of the audit recommendations to ensure that all the key risks and controls have been addressed.
Page 1 and 2: publicbank • 35 Risk Management I
Page 3 and 4: publicbank • 37 3. The Credit Ris
Page 5 and 6: publicbank • 39 INDEPENDENT RISK
Page 7 and 8: publicbank • 41 RISK MANAGEMENT P
Page 9 and 10: publicbank • 43 The key risk mana
Page 11 and 12: publicbank • 45 Type of Risk Risk
Page 13 and 14: publicbank • 47 The Financial Act
Page 15 and 16: publicbank • 49 Awards Year Bank-
Page 17 and 18: publicbank • 51 Y.Bhg. Datuk Tay
Page 19 and 20: publicbank • 53 Y.Bhg. Tan Sri Da
Page 21 and 22: publicbank • 55 Y.Bhg. Dato’ Le
Page 23 and 24: publicbank • 57 He qualified as a
Page 25 and 26: FINDING STRENGTH IN DIVERSITY The b
Page 27 and 28: publicbank • 61 TO SHAREHOLDERS F
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Page 33 and 34: publicbank • 67 ACKNOWLEDGEMENT W
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Page 39 and 40: STATEMENT ON INTERNAL CONTROL publi
Page 41 and 42: publicbank • 75 • There are pro
Page 43 and 44: HEADS OF DIVISION publicbank • 77
Page 45 and 46: publicbank • 79 En. Nasaruddin bi

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