A N N U A L R E P O R T 2 0 0 1 - IGB Corporation Berhad

AUDIT COMMITTEE REPORT(h)Reviewed the Company’s compliance in particular the quarterly and year end financial statements withthe Listing Requirements of the KLSE, MASB and other relevant legal and regulatory requirements.(i)Reviewed the related party transactions entered into by the Group.(j)Reviewed the extent of the Group’s compliance with the provisions set out under the Malaysian Code onCorporate Governance for the purpose of preparing the Corporate Governance Statement pursuant tothe KLSE Listing Requirements.(k)Reviewed the profit estimate, forecast and projections of the Group for the financial periods 31 December2000 to 31 December 2004 for the purpose of submission to the Securities Commission in connection withthe proposed merger of the property related businesses of IGB and Tan & Tan.Internal Audit FunctionsThe Group has an Internal Audit department whose principal responsibility is to undertake regular and systematicreviews of the systems of financial and operational controls so as to provide reasonable assurance that suchsystems continue to operate satisfactorily and effectively. The attainment of such objectives involves thefollowing activities being carried out by the department:(a)reviewing and appraising the soundness, adequacy and application of accounting, financial and othercontrols promoting effective control in the Company and the Group at reasonable cost;(b)ascertaining the extent of compliance with established policies, procedures and statutory requirements;(c)ascertaining the extent to which the Company and the Group’s assets are accounted for and safeguarded;(d)appraising the reliability of information developed within the Company and the Group for management;(e)recommending improvements to the existing system of controls;(f)reviewing the effectiveness and efficiency of operations; and(g)carrying out investigations and special reviews requested by management and/or Audit Committee.34IGB Annual Report 2001