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AUDIT COMMITTEE REPORT
82
e) Related Party Transactions
Review the recurrent related party transactions entered into
by the Group.
f) Other Matters
Review the Audit Committee Report, Statement on Corporate
Governance and Statement of Internal Control prior to their
inclusion in the Company’s Annual Report.
5. INTERNAL AUDIT FUNCTION
The Group has an internal audit function which is carried out
by the Internal Audit Services (IAS). The IAS reports directly to
the Audit Committee and is guided by its Internal Audit Charter.
The IAS assists the Board in fulfilling its fiduciary responsibilities
over the areas of financial, operational, information system,
investigation, risk management and governance process in
accordance with the approved Audit Plan. This is to provide
reasonable assurance that such system continues to operate
satisfactorily and effectively in the Group.
The high risk activities are given due attention on a more
regular basis while the others are prioritized accordingly to an
assessment of the potential risk exposure and impact. During
the financial year ended 31 December 2012, the IAS carried
out its duties covering financial and operational audits. Reviews
on compliance with the established procedures, guidelines and
statutory obligations are also performed.
The internal audit reports were issued to Management for
their response on corrective and preventive actions as well as
deadlines to complete the actions. The reports were tabled to
the Committee for deliberation on quarterly basis.
Investigations were also made at the request of the Committee
and Management on specific areas of concern to follow up in
relation to high risk areas identified in the regular reports. These
investigations provided additional assurance on the integrity and
robustness of the internal control systems.
The Internal Audit Department within its terms and reference
carried out the following activities for the period:-
•
review and appraise the adequacy and integrity of the
internal financial controls so as to ensure that it provides
a reasonable but not absolute assurance that assets are
properly safeguarded;
•
ascertain the effectiveness of the Management in identifying
principal risks and to manage such risks through the Risk
Management Framework set-up by the Group;
•
ascertain the level of compliance with Group’s plans, policies,
procedures and adherence to laws and regulations;
•
appraise the effectiveness of administrative and financial
controls applied and the reliability and integrity of data that is
produced within the Group;
•
perform follow-up reviews of previous audit reports to ensure
appropriate actions are implemented to address control
weaknesses highlighted;
•
carry out investigations and special reviews requested by the
Committee and/or Management; and
•
prepare the Audit Committee Report for the Company’s
Annual Report 2012.
The internal audit function is performed in-house with thirteen
(13) staff members. A total of 235 audits were carried out and
presented to the Committee with the recommended corrective
actions acted upon.
The total costs incurred for the internal audit function for the
financial year 31 December 2012 was approximately RM1.2
million. Training and courses are provided to the staff members
in the areas of auditing and technical skills as well as personal
development.
6. SEMINARS/CONFERENCES ATTENDED BY
THE COMMITTEE
For the year under review, the Committee attended the following
seminars and conferences:
No Name of Seminars/Conference
Date
1 International Malaysia Law Conference 26 – 28 Sep 2012
2 Khazanah Megatrends Forum
1 – 2 Oct 2012
3 Directors Forum 2012
7 – 9 Oct 2012
4 Seminar on Regulatory Updates,
27 Nov 2012
Governance and Current Issues for
Directors of PLCs and Body
Corporate 2012
5 Bursa Malaysia Half Day
3 Dec 2012
Governance Programme
6 Audit Committee Institute
12 Dec 2012
Breakfast Roundtable titled
The Audit Committee’s Oversight
Role on Financial Reporting
Annual Report
2012
KPJ Healthcare Berhad