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ANNUAL REPORT 2015
Audit Committee Report (cont’d)
INTERNAL AUDIT FUNCTION AND ITS ACTIVITIES
The Company has an in-house internal audit function which provides independent and objective assurance of the adequacy
and effectiveness of Risk Management, internal controls, governance processes of the Group covering all operations where
the Group has management control. In addition to the assurance role, the Internal Audit function also undertakes consulting
and investigative role. In its consulting role, the Internal Audit undertakes policy and procedures review. Investigative audits
are undertaken where there are misconduct, illegal and dishonest acts reported through the Whistleblowing Channel of
the Group. The Internal Audit function adopts the International Standards for the Professional Practice of Internal Auditing
issued by the Institute of Internal Auditors. During the financial period under review, the Internal Audit function undertook
various audit assignments in accordance with the annual audit plan and also conducted ad-hoc reviews on areas of concern
identified by Management. The Head of the Internal Audit reports directly to the Audit Committee. Internal Audit reports
are presented, together with Management’s responses and proposed action plans, to the Audit Committee quarterly.
The main activities undertaken during the financial year ended 30 June 2015 were as follows:
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.
The costs incurred by the internal audit function in respect of the financial year ended 30 June 2015 were RM491,608.
The report is made in accordance with a resolution of the Board of Directors dated 20 October 2015.
