Annual Report 2012 - IOI Group

x. Review of the extent of the Group’s compliance with therelevant provisions set out under the Malaysian Code onCorporate Governance for the purpose of preparing theStatement on Corporate Governance and Statement onInternal Control pursuant to the Main Market ListingRequirements of Bursa Malaysia Securities Berhad.xi.Review of investigation report by Internal AuditDepartment on findings and recommendations ofallegation on conflict of interests involving an employeeon tender and award of contracts.Number of Meetings and Details of AttendanceFive (5) meetings were held during the financial year ended30 June 2012. The attendance record of each member was asfollows:MembersTotalNumberof MeetingsNumber ofMeetingsAttendedDatuk Hj Mohd Khalil b5 5Dato’ Hj Mohd NoorDatuk Karownakaran @5 5Karunakaran a/l RamasamyQuah Poh Keat 5 5Two (2) meetings were held subsequent to the financial yearend to the date of Directors’ Report and were attended bythe following members:D. INTERNAL AUDIT FUNCTIONThe annual Internal Audit plan is approved by the Committeeat the beginning of each financial year.The Internal Audit Department performs routine audit on andreviews all operating units within the Group, with emphasison principal risk areas. Internal Audit adopts a risk-basedapproach towards planning and conduct of audits, which ispartly guided by an Enterprise Risk Management Framework.Impact on IOI’s vision is taken into consideration indetermining the risk level as a holistic approach in contributingto the achievement of the Group’s objective and in enhancingshareholders’ value.127 audit assignments were completed during the financialyear on various operating units of the Group coveringplantation, properties, manufacturing, hotels and othersectors. Audit reports were issued to the Committee andBoard incorporating findings, recommendations to improveon the weaknesses noted in the course of the audits andmanagement comments on the findings. An establishedsystem has been put in place to ensure that all remedialactions have been taken on the agreed audit issues andrecommendations highlighted in the audit reports. Significantissues and matters unsatisfactorily resolved would behighlighted to the Committee quarterly.The total costs incurred for the internal audit function of theGroup for the financial year ended 30 June 2012 wasRM2,878,000 (2011: RM2,703,000).MembersTotalNumberof MeetingsNumber ofMeetingsAttendedDatuk Hj Mohd Khalil b2 2Dato’ Hj Mohd NoorDatuk Karownakaran @2 2Karunakaran a/l RamasamyQuah Poh Keat 2 2Annual Report 2012IOI CORPORATION BERHAD 85