Eng - IOI Group

Audit Committee Report cont’dTERMS OF REFERENCE cont’d3 AuthorityThe Committee is authorised by the Board to investigate any activity within its terms of reference. It shall have:iiiiiiUnrestricted access to any information pertaining to the Company and its subsidiary companies.Direct communication channels with both the external auditors and internal auditors.Full access to any employee or member of the management.The Committee is also authorised by the Board to obtain outside legal or other independent professional advice it considers necessaryand reasonable for the performance of its duties.4 Duties and ResponsibilitiesIn fulfilling its primary objectives, the Committee will need to undertake the following duties and responsibilities summarised asfollows:iTo review with management on a periodic basis, the Company’s general policies, procedures and controls especially in relationto management accounting, financial reporting, risk management and business ethics.iiTo consider the appointment of the external auditors, the terms of reference of their appointment, the audit fee and any questionsof resignation or dismissal.iiiTo review with the external auditors their audit plan, scope and nature of the audit for the Company and the Group.ivTo review the external auditors’ management letter and management’s response.vTo review with the external auditors with regard to problems and reservations arising from their interim and final audits.viTo review with the external auditors, their audit report.vii To review the assistance given by employees to the external auditors.viii To review the adequacy of the scope, functions and resources of the Internal Audit Department and that it has the necessaryauthority to carry out its work.ixTo review the internal audit programme and results of the internal audit programme and where necessary ensure that appropriateaction is taken on the recommendations of the internal audit function.xTo consider the report, major findings and management’s response thereto on any internal investigations carried out by theinternal auditors.67ANNUAL REPORT 2007IOI Corporation Berhad