Hatching For The Future - teo seng capital berhad

Teo Seng Capital Berhad
Audit Committee’s Report
(vi) the internal audit programme, processes, the results of the internal audit programme, processes or investigation
undertaken and whether or not appropriate action is taken on the recommendations of the internal audit function;
(vii) the quarterly results and year end financial statements, prior to the approval by the Board, focusing particularly on:
(a) changes in or implementation of major accounting policy changes;
(b) significant and unusual events; and
(c) compliance with accounting standards and other legal requirements;
(viii) any related party transaction and conflict of interest situation that may arise within the Company or Group
including any transaction, procedure or course of conduct that raises questions of management integrity;
(ix) any letter of resignation from the external auditors and any questions of resignation or dismissal; and
(x) whether there is reason (supported by grounds) to believe that the Company's external auditor is not suitable for
re-appointment;
(2)
Oversee the Company’s internal control structure to ensure operational effectiveness and efficiency, reduce risk of
inaccurate financial reporting, protect the Company’s assets from misappropriation and encourage legal and
regulatory compliance;
(3)
Assist the Board in identifying the principal risks in the achievement of the Company’s objectives and ensuring the
implementation of appropriate systems to manage these risks;
(4)
Recommend to the Board on the appointment and re-appointment of the external auditors and their audit fee, after
taking into consideration the independence and objectivity of the external auditors and the cost effectiveness of the
audit;
(5)
Discuss with the external auditors before the audit commences the nature and scope of the audit and ensure
co-ordination where more than one audit firm is involved;
(6)
Discuss problems and reservations arising from the audits and any matter the auditors may wish to discuss in the
absence of the management where necessary;
(7)
Review the external auditor’s management letter and management’s response therein;
(8)
In relation to the internal audit function:-
(i) 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;
(ii) review the internal audit programme and results of the internal audit process and, where necessary, ensure that
appropriate actions are taken on the recommendations of the internal audit function;
(iii) review any appraisal or assessment of the performance of members of the internal audit function;
(iv) approve any appointment or termination of senior staff members of the internal audit function; and
(v) take cognisance of resignations of internal audit staff members and provide the resigning staff member an
opportunity to submit his reasons for resigning.
(9)
Consider the major findings of internal investigations and management’s response; and
(10) Consider other matters as defined by the Board.
Annual Report 2012
25