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Annual Report 2013
KPJ HEALTHCARE BERHAD
89
4. SUMMARY OF ACTIVITIES
During the year 2013, the Committee carried out the following
activities:
a) Financial results
i)
Review the quarterly unaudited
nancial 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 nancial statements, with Listing
Requirements of Bursa Malaysia, Malaysian Financial
Reporting Standards and other relevant legal and
regulatory requirements.
b) Risk Management
i)
Review the Group’s risk management process in
mitigating the principal business risks identi ed; and
ii) Review the risk pro le of the Group and the major
initiatives having signi cant impact on the business.
c) Internal Audit
i)
Review and approve the annual audit plan for the year
2012/2013 to ensure adequate scope and comprehensive
coverage over the audit activities;
ii) Deliberate on the Internal Audit Reports that
were tabled and appraised the adequacy of the
Management’s responsiveness to the audit ndings and
recommendations;
iii) Evaluate the results of scheduled follow-ups,
investigations and special audits; and
iv) Assess the status of audit activities as compared to the
approved annual audit plan.
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.
e) Related Party Transactions
Review the recurrent related party transactions entered into
by the Group.
f)
Other Matters
i)
Review and recommend the Audit Committee Report,
Statement on Corporate Governance as well as
Statement on Risk and Internal Control for inclusion in
the Company’s Annual Report, prior to Board approval.
ii) Review management’s quarterly reports on new laws
and regulations, material litigation, regulatory matters
and risk management.
5. INTERNAL AUDIT FUNCTION
5.1 ROLES AND RESPONSIBILITIES
The Group has an internal audit function which is carried out
by Internal Audit Services (IAS). The IAS assists the Board in
ful lling its duciary responsibilities over the areas of nancial,
operational, information system, investigation, risk management,
internal control and governance process in accordance with the
approved Audit Plan. This is to provide reasonable assurance that
such systems continue to operate satisfactorily and effectively in
the Group.
The Head of IAS reports directly to the Committee and is guided by
its Internal Audit Charter. 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. The high risk activities are given due attention on a more
regular basis while the others are prioritised accordingly to an
assessment of the potential risk exposure and impact.
5.2 AUDIT RESOURCES
The total staff strength in IAS is 16 staff as at 31 December
2013. The total costs incurred for the internal audit function
covering the manpower and incidental costs such as traveling
and training cost for the nancial year ended 31 December 2013
was approximately RM1.3 million. Various training programmes
and courses are provided to the staff members in enhancing the
desired competency level. The training programmes, comprising
in-house and externally sourced training, focuses on functional
and development needs of the staff members.
Audit Committee
Report