2009 - TDM Berhad

52 TDM Berhad (6265-P)Report of Audit CommitteeActivitiesDuring the fi nancial year under review, the Audit Committee was engaged in the following activities.i) Reviewed and deliberated on a total of fi ve (5) audit reports assignments conducted by the Internal Audit Department of the Company.ii) Reviewed management letters and audit reports of the external auditors.iii) Reviewed and approved the Annual Audit Plan of the Company for the calendar year 2009. In its review of the Annual Audit Plan, the AuditCommittee reviewed the scope and coverage over the activities of the respective business units of the Group and the Internal Audit’s basisof assessment of risk rating of the proposed areas of audit.iv) Concurrently reviewed and deliberated Internal Audit Department’s audit fi ndings and recommendations.v) Reviewed unaudited quarterly fi nancial statements and the audited fi nancial statements of the Company and the Group and recommendedthe same for the approval by the Board, upon being satisfi ed that the fi nancial reporting and disclosure requirements of the relevantauthorities has been complied with.vi) Reviewed the processes and investigation undertaken by the Internal Audit Department, the audit fi ndings and risk analysis on each tasks andemphasized on the follow up audits to ensure corrective actions are taken and recommendations of the Internal Audit are implemented.vii) Overseen the formalisation of risk management exercise.viii) Review of the Report of the Audit Committee, Statement on Internal Control and Statement on Corporate Governance.Internal Audit FunctionThe principal roles of the Internal Audit Function are:• To ensure that a sound internal control system is in place and the system is functioning adequately and its integrity is maintained.• To add value and improve the Group’s operations by providing independent and objective evaluation of the operations.• To carry out investigations and special review requested by management or the Audit Committee.• To carry out audit work in liaison with the external auditors to maximise the use of resources and for effective coverage of audit risks.Employees’ Share Option Scheme (“ESOS”)The Audit Committee has reviewed and verifi ed that the allocations of option granted during the fi nancial year under the Company’s ESOS werein accordance with the provisions as set out in the ESOS By-Laws.The approval of the Board for this report was obtained on 25 February 2010.Haji Long bin A. RahmanChairman Audit Committee