FORGING AHEAD - Tradewinds Plantation Berhad

66
CORPORATE GOVERNANCE
STATEMENT ON
INTERNAL CONTROL
4. There are specific procedures for both capital and
revenue expenditures.
5. Detailed budgeting process is established requiring all
key operating companies in the Group to prepare
budgets annually which are discussed and approved by
their respective boards.
6. Comprehensive management reports are provided
quarterly to the Board for monitoring of the performance
against the approved budget covering all key financial
and operational indicators and compliance with all
applicable rules and regulations.
7. The Group Internal Audit provides the Audit Committee
an independent assurance on the adequacy of risk
management, internal control and governance systems.
The Group Internal Audit carries out regular review on
the business processes to assess the adequacy and
effectiveness of internal control, compliance with
regulations and the Group’s policies and procedures
based on a risk-based audit approach. Results of such
reviews are reported to the Audit Committee.
The work of the internal auditors is in accordance with an
annual audit plan approved by the Audit Committee at
the beginning of the year. The head of Group Internal
Audit reports to the Audit Committee.
Formal procedures are in place for correction of
weaknesses identified in the Internal Audit Reports.
8. The Audit Committee holds meetings at least once every
quar ter to deliberate on the audit findings,
recommendations, management responses and corrective
actions for improvement on the state of the internal
control system. The minutes of the Audit Committee
meetings are tabled to the Board.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
9 The Audit Committee meets regularly with senior
management and the head of the Group Internal Audit to
review the Company and the Group’s financial reporting,
the nature, scope and results of audit review, and the
effectiveness of the system of internal control. The Audit
Committee meets with the external auditors without the
presence of management team at least twice a year.
The activities of the Audit Committee during the financial year
ended 31 December 2010 are set out under the Report of the
Audit Committee on pages 68 to 71 of this Annual Report.
RELATIONSHIP WITH THE AUDITORS
The Board maintains a formal and transparent professional
relationship with the auditors through the Audit Committee.
The role of the Audit Committee in relation to the internal and
external auditors is described in the Report of the Audit
Committee set out on pages 68 and 71 of this Annual Report.
This Statement is made in accordance with a resolution of the
Board of Directors dated 18 February 2011.