2001 Annual Report - Kian Joo Can

AUDIT
COMMITTEE
Report (Cont’d)
SUMMARY OF ACTIVITIES OF THE INTERNAL AUDIT FUNCTION AND THE
AUDIT COMMITTEE DURING THE YEAR ENDED 31 DECEMBER 2001
Internal Audit Function
The Group has an internal audit department with the principal responsibility to undertake
regular and systematic reviews of the systems of internal controls to provide reasonable
assurance that such systems continue to operate effectively and efficiently.
In attaining such objectives, the following activities were carried out by Internal Audit
Department in 2001:
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Conducted periodic checks to determine the extent of compliance with established
policies, procedures and statutory requirements.
Carried out ad-hoc investigations and special reviews requested by management.
Recommended improvements to the existing systems of controls by way of issuing
audit reports to the appropriate level of management for corrective action
improvements to be taken.
Taking corrective actions to continuously improve on the controls, processes
and operations of the Group based on feedback from management and
recommendations from external auditor.
Actively involved in the migration of ISO 9002 :1994 to ISO 9001 :2000 for
certain subsidiaries and being part of the Internal Quality Audit Team.
Summary of Activities of the Audit Committee
During the year ended 31 December 2001, the Audit Committee performed its duties
as set out in its terms of reference.
The main activities undertaken by the Audit Committee are as follows:-
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Reviewed with the external auditors their scope of work and audit plan for the year.
Reviewed the results of the external audit, the audit report and the management
letter, including management’s response.
Reviewed the internal audit department’s resource requirements, program and plan
for the year under review.
Reviewed the internal audit reports and actions taken by the management to improve
on the internal controls system based on internal audit findings.
Reviewed the annual report and audited financial statement of the Company and the
Group before submission to the Board for their consideration and approval. The
review was to ensure that the audited financial statements were drawn up in
accordance with the provisions of the Companies Act, 1965 and the applicable
approved accounting standards approved by MASB.
Reviewed the quarterly financial result before recommending them for Board’s
approval. The review and discussions were conducted with the Group Financial Controller.
Reviewed the Group’s compliance with the Listing Requirements of the KLSE, MASB
and other relevant legal and regulatory requirements.
Discussed on significant related party transactions entered into by the Group.
Reviewed the extent of the Group’s compliance with the provisions set out under the
Malaysian Code on Corporate Governance for the purpose of the Corporate
Governance Statements pursuant to the KLSE Listing Requirements.
Recommended to the Board the prescribed corporate governance principles and
best practices under the Code.
18 . Annual Report / 2001 KIAN JOO CAN FACTORY BERHAD (3186-P)