4. SUMMARY OF ACTIVITIES
During the year 2014, the Committee carried out the
following activities:
(a) Financial results
i)
Reviewed the quarterly unaudited financial result
announcements before recommending the same
to the Board for approval; and
ii)
Reviewed the Company’s compliance, in particular
the quarterly and year-end financial statements,
with Listing Requirements of Bursa Malaysia,
Malaysian Financial Reporting Standards and
other relevant legal and regulatory requirements.
(b) Risk Management
i)
Reviewed the Group’s risk management process
in mitigating the principal business risks
identified; and
ii)
Reviewed the risk profile of the Group and major
initiatives having significant impact on the
business.
(c) Internal Audit
i)
Reviewed and approved the annual audit plan for
the year 2013/2014 to ensure adequate scope and
comprehensive coverage over the audit activities;
ii)
Deliberated on the Internal Audit Reports that
were tabled and appraised the adequacy of the
Management’s responsiveness to the audit
findings and recommendations;
iii) Evaluated the results of scheduled follow-ups,
investigations and special audits; and
iv) Assessed the status of audit activities as
compared to the approved annual audit plan.
(d) External Audit
i)
Reviewed the audit plan, audit strategy and scope
of work before the audit commences; and
ii)
Reviewed 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
Reviewed the recurrent related party transactions
entered into by the Group.
(f) Other Matters
i)
Reviewed and recommended 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)
Reviewed the management’s quarterly reports on
new laws and regulations, material litigations,
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 the Internal Audit Services (IAS). The IAS assists the
Board in fulfilling its fiduciary responsibilities over the areas
of financial, 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 were given due attention on a more regular basis
while the others were prioritised according to an
assessment of the potential risk exposure and impact.
5.2 AUDIT RESOURCES
As at 31 December 2014, the IAS comprised 15 staff. The
total costs incurred for the internal audit function covering
the manpower and incidental costs such as travelling and
training cost for the financial year ended 31 December 2014
was approximately RM1.7 million. Various training
programmes and courses were provided to staff members
in enhancing the desired competency level. The training
programme, comprising in-house and externally-sourced
training focuses on functional and development needs of the
staff members.
176
KPJ Healthcare Berhad annual report
2014
AUDIT COMMITTEE REPORT
AND TERMS OF REFERENCE
