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AUDIT COMMITTEE REPORT
81
Authority
The Committee is empowered by the Board to:-
a) investigate any matter within its terms of reference or as directed
by the Board;
b) determine and obtain the resources which are required to
perform its duties;
c) have full and unrestricted access to any information pertaining
to the Group;
d) have direct communication channels with the External and Internal
Auditors; and
e) obtain external legal and other independent professional advice.
3. DUTIES AND RESPONSIBILITIES
The Committee shall carry out the following functions:-
a) Financial Reporting Review
Review the quarterly and year-end financial statements of the
Company, focusing particularly on:-
i) any changes in accounting policies and practices;
ii) significant adjustments arising from the audit;
iii) the going concern assumption;
iv) compliance with accounting standards; and
v) compliance with Listing Requirements of Bursa Malaysia
and other legal and statutory requirements.
b) Risk Management
i) Review the adequacy and provide independent assurance
to the Board on the effectiveness of risk management
functions in the Group and whether principles and
requirements of managing risk are consistently adopted
throughout the Group; and
ii) Review the risk profile of the Group and major initiatives
having significant impact on the business.
c) Internal Audit
i) Approve the Audit Charter and ensure the internal audit
functions are adequately resourced;
ii) Review the adequacy of Internal Audit Plan, the scope
of audits and that the internal audit function has the
necessary authority, competency and resources to carry
out its work;
iii) Review the results of the internal audit process and where
necessary ensure that appropriate action is taken on the
recommendations of the internal audit function;
iv) Approve any appointment or dismissal of the Head of
Internal Audit;
v) Review appraisal or assessment of members of the internal
audit function; and
vi) Direct any special investigation to be carried out by the
internal audit.
d) External Audit
i) Review the External Auditor’s audit plan, scope of the audit
and audit reports;
ii) Consider the appointment of the External Auditor, the audit
fee and any questions of resignation or dismissal of the
External Auditor before making any recommendation to the
Board;
iii) Discuss issues and reservations arising from the interim
and final audits, and any matters the Auditor may wish to
discuss; and
iv) Review the External Auditor’s Management Letter and
Management’s response.
e) Related Party Transactions
Monitor and review any related party transactions that may
arise within the Company or Group.
f) Other Matters
Consider such other matters as the Committee considers
appropriate or as authorized by the Board.
4. SUMMARY OF ACTIVITIES
During the year, the Committee carried out the following
activities:
a) Financial results
i) Review the quarterly unaudited financial result
announcements before recommending the same to the
Board for approval; and
ii) Review the Company’s compliance, in particular the
quarterly and year end financial statements, with the Listing
Requirements of Bursa Malaysia, Malaysian Accounting
Standards Board and other relevant legal and regulatory
requirements.
b) Risk Management
i) Review the Group’s risk management process in mitigating
the principal business risks identified; and
ii) Review the risk profile of the Group and major initiatives
having significant impact on the business.
c) Internal Audit
i) Review and approve the annual audit plan for the year
2011/2012 to ensure adequate scope and comprehensive
coverage over the audit activities; and
ii) Deliberate on the Internal Audit Reports that were tabled
and appraised Management’s response to the key audit
observations and recommendations.
d) External Audit
i) Review the audit plan, audit strategy and scope of work
before the audit commences; and
ii) Review the results of the interim and annual audit as well
as the External Auditor’s Management Letter and evaluated
Management’s response.
Annual Report
2012
KPJ Healthcare Berhad