4.1 OBJECTIVES OF THE COMMITTEE
a.
To ensure transparency, integrity and accountability
in the Group’s activities so as to safeguard the rights
and interests of the shareholders;
b.
To provide assistance to the Board in fulfilling its
fiduciary responsibilities relating to corporate
accounting and reporting practices;
c.
To improve the Group’s business efficiency, the
quality of the accounting and audit function as well as
strengthen public confidence in the Group’s reported
financial results;
d.
To maintain a direct line of communication between
the Board and the External and Internal Auditors;
e.
To ensure the independence of the External and
Internal Audit functions; and
f.
To create a climate of discipline and control which
would reduce the opportunity for fraud.
4.2 MEMBERSHIP
a. The Committee members shall be appointed by the
Board, amongst its Directors which fulfils the
following requirements:
i.
the Committee must comprise of not less than
three (3) members;
ii.
all members must be Non-Executive Directors,
with a majority of them being Independent
Directors; and
iii. all members should be financially literate and
at least one (1) of them must meet the criteria
set by the Bursa Malaysia Listing Requirements
i.e.:
– must be a member of the Malaysian
Institute of Accountants (MIA) or
– if he/she is not a member of the Malaysian
Institute of Accountants, he/she must have
at least three (3) years’ working experience,
and:
• must have passed the examinations
specified in Part 1 of the 1st Schedule
of the Accountants Act 1967; or
• must be a member of one of the
associations of accountants specified in
Part II of the 1st Schedule of the
Accountants Act 1967.
b.
The Chairman of the Committee that is elected by
the Board shall be an Independent Director as set by
Bursa Malaysia Listing Requirements;
c.
The term of office and performance of the Committee
shall be reviewed by the Board to determine whether
the Committee has carried out its duties in accordance
with its terms of reference; and
d.
No alternate Director of the Board shall be appointed
as a member of the Committee.
4.3 REPORTING RESPONSIBILITIES
The Committee will report to the Board on the nature and
extent of the functions performed by it and may take
such recommendations to the Board on any audit and
financial reporting matters as it may think fit.
4.4 MEETINGS AND ATTENDANCE
a.
At a minimum, the Committee should meet at least
four (4) times a year, which is on a quarterly basis,
to properly carry out its duties and ensure effective
discharge of its responsibilities. Additional meetings
may be called at any time at the Chairman’s
discretion;
b.
The External Auditor should normally be invited to
attend the meeting to present their findings and
opinion to the financial statements;
192
audit committee REPORT
and Terms of Reference
