Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

62
Group Audit Committee Report
• Reviewed the independence and objectivity of the external auditors and the services provided;
• Reviewed the adequacy of the internal audit plans, scope of examination and internal audit reports and
ensure that appropriate action is taken by Management in respect of the audit fi ndings and the Committee’s
recommendations;
• Reviewed the quarterly and year end fi nancial results of the Company and the Group prior to making a
recommendation to the Board for approval and public release thereof;
• Reviewed the Statement of Related Party Transactions and Procedures;
• Reviewed the Statement of Internal Control and the Audit Committee Report before they were presented to
the Board of Directors;
• Considered and recommended to the Board the re-appointment of the external auditors of the Group and the
audit fees;
• Reviewed the appraisal of the performance of the internal audit staff and the KPI of the Group Internal Auditor;
• Reviewed its term of reference and recommended to the Board for approval;
• Reviewed the results of the Audit Committee Self-Assessment checklist; and
• Verifi ed the allocation of options pursuant to the Company’s Employees’ Share Option Scheme and the
movement of options at the end of the fi nancial year.
Statement of Verifi cation on Allocation of Options Pursuant to Employees’ Share Option
Scheme (“ESOS”)
Paragraph 8.17(3) of Chapter 8 of the MMLR requires the Audit Committee to verify the allocation of options under
the ESOS to comply with the criteria on the allocation of options at the end of each fi nancial year.
The share options offered and granted to eligible employees of the Group in pursuant of the criteria as set out in the
by-laws of the Company’s ESOS during the fi nancial year ended 2011 have been audited by Group Internal Audit.
The Group Audit Committee having reviewed the Internal Audit Report thereon is satisfi ed that these options have
been allocated in compliance with the by-laws of the Company’s ESOS.
Internal Audit Function
The Company has an Internal Audit Division whose primary responsibility is to conduct regular and systematic audits
of the signifi cant operations of the Group based on assessed risks so as to provide reasonable and independent
assurance to the Committee of the adequacy of the systems of internal control within the Group. The purpose,
authority and responsibility of the internal audit function are articulated in an Internal Audit Charter approved by
the Audit Committee and the Board. The annual group internal audit plan is approved by the Committee each year.
The Internal Audit function, which is independent of the activities they audit, has carried out several planned audits
and special ad-hoc reviews during the year. Reports on the adequacy of controls and extent of compliance with
internal fi nancial policies and operational procedures in respect of the areas audited and recommendations to
improve the existing systems of internal control and operational effectiveness have been provided to both operations
management and the Committee.
The Group Internal Audit Department is staffed by a team of 8 and the cost of maintaining the function in 2011
amounted to RM1,263,600 (2010: RM1,108,695).
This Statement is made in accordance with a resolution of the Board of Directors dated 3 April 2012.
Cahya Mata Sarawak Berhad