5. Uphold Integrity in Financial Reporting
Compliance with Applicable Financial Reporting Standards
In presenting the annual financial statements and
quarterly announcements to shareholders, the Board
aims to present a balanced and understandable
assessment of the Group’s position and prospects. This
also applies to other price-sensitive public reports and
reports to regulators. Timely release of announcements
reflects the Board’s commitment to provide transparent
information on the Group’s performances and activities.
In the preparation of the financial statements, the
Directors have taken necessary steps to ensure that the
Group complied with all applicable Financial Reporting
Standards, provisions of the Companies Act 1965 and
relevant provision of laws and regulations in Malaysia,
including the respective countries in which the
subsidiaries operate, consistently and that the policies are
supported by reasonable and prudent judgement and
estimates.
The Audit Committee assists the Board in ensuring that
both the annual financial statements and quarterly
announcements are accurate and the preparation is
consistent with the accounting policies adopted by the
Group. The quarterly reports, prior to tabling to the
Board for approval, will be reviewed and approved by the
Audit Committee.
The Directors are required by the Companies Act 1965 to
prepare financial statements for each financial year which
have been made in accordance with the Malaysian
Financial Reporting Standards and the International
Financial Reporting Standards. This is to ensure a true
and fair view of the financial position of the Group and
the Company at the end of the financial year and of the
results and cash flows of the Group and Company for the
financial year.
In preparing the financial statements, the Directors have
adopted suitable accounting policies and applied them
consistently; made judgement and estimates that are
reasonable, prudent and prepared the financial
statements on a going-concern basis, as the Directors
have a reasonable expectation, having made enquiries
that the Group and Company have resources to continue
in operational existence for the foreseeable future.
The Directors have the overall responsibilities for taking
such steps necessary to safeguard the assets of the
Group, as well as prevent and detect fraud and other
irregularities.
The Statement by Directors pursuant to Section 169(15) of
the Companies Act 1965 is set out in the financial
statements.
Assessment of Suitability and Independence of External
Auditors
The Board, through the Audit Committee has maintained
an appropriate relationship with the External Auditors as
there is a formal and transparent arrangement in the
review of the External Auditors’ audit plan, report,
internal control issues and procedures.
In 2014, the External Auditors attended all four (4) Audit
Committee Meetings which were held on 17 February
2014, 15 May 2014, 14 August 2014 and 13 November
2014. They also attended the Company’s 21
st
AGM held on
10 June 2014.
The Audit Committee met with the External Auditors
without the presence of the Executive Board Member and
Senior Management twice (2) during the year, on
17 February 2014 and 13 November 2014. The Board is of
the view that the External Auditors are independent and
they are re-appointed annually at the AGM.
6. Recognise and Manage Risks
Framework to Manage Risk
The Board, as part of its leadership role coordinates and
delegates specific responsibilities to several Committees
to facilitate the operations of the Group at the Board and
Management level. Each Committee has written terms of
reference defining its scope, powers and responsibilities.
These Committees have the authority to examine
particular issues and report back to the Board with their
findings and recommendations. The ultimate responsibility
for the final decisions and recommendations on all
matters emanating from these Committees, however, lies
with the entire Board.
163
KPJ Healthcare Berhad annual report
2014
