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JAYA TIASA HOLDINGS BERHAD
38
INTERNAL AUDIT FUNCTION AND ITS ACTIVITIES
The Group has an internal audit function which is carried out by the Group’s Internal Audit Department. Its principal activity
is to conduct internal audit reviews and performs checks and compliance tests of the Group’s systems of internal controls,
including financial, operational and information technology controls and risk management. The Group’s Internal Audit
Department is independent of its activities and reports directly to the Audit Committee (AC) which reviews and approves its
annual Audit Plan. During the financial period under review, the Group’s Internal Audit Department undertook various audit
assignments in accordance with the annual audit plan and also conducted ad-hoc reviews on areas of concern identified
by Management and the AC. The Group’s Internal Audit Department applies the Standards for the Professional Practice
of Internal Auditing of the Institute of Internal Auditors. The costs incurred by the internal audit function in respect of the
financial period ended 30 June 2014 were RM473,255.
The following main activities were carried out by the Audit Committee during the financial year ended 30 June 2014:
a.
Reviewed the soundness, adequacy and application of accounting, financial, operational and compliance controls
and promoted control awareness in the group;
b.
Ascertained the extent of compliance with established policies, procedures and statutory requirements;
c.
Ascertained the extent to which the Company’s and Group’s resources are accounted for and safeguarded from
losses of all kinds;
d.
Determined the reliability and usefulness of data and information generated for management reporting purposes;
e.
Carried out environmental, safety and health audits on the Company and the Group;
f.
Identified opportunities to improve the operations of and processes in the Company and the Group;
g.
Carried out analyses to determine the efficiency of businesses carried out by the Group;
h.
Reviewed related party transactions that had arisen within the Company and Group;
i.
Attended the bi-annual physical inventories of finished goods, raw materials and spare parts; and
j.
Performed follow-up audits on the implementation of audit recommendations and action plans agreed upon by
management.
This Report is made in accordance with a resolution of the Board of Directors dated 21 October 2014.
audit committee report (cont’d)