4.4 Relationship with Auditors
The Board has established a formal and transparent relationship with the External Auditors appointed by the Company and its subsidiaries within its fold.
The External Auditors are invited to attend the Audit Committee Meeting where the Group’s annual financial results are considered, as well as at meetings to review
and discuss the Group’s audit findings, internal controls and accounting policies, whenever the need arises.
For the financial year under review, the Audit Committee had two (2) meetings with the External Auditors without the presence of Management, which has
encouraged a greater exchange of independent, frank views and opinions/dialogue between both parties.
The Audit Committee obtains confirmation from the External Auditors on their independence throughout their terms of engagement for the financial year in
compliance with the requirements of the relevant professional and regulatory bodies and/or authorities.
The Board also reviews the External Auditors’ annual audit plan and scope of work for each of the financial years and the External Auditors’ audit review on the
financial statements for each of the financial years together with their audit report.
The Annual Assessment Form for External Auditors is established to assess the annual performance of the External Auditors by the Audit Committee.
Further information on the role of Audit Committee in relation to the External Auditors is stated in the Audit Committee Report on pages 18 to 21 of this Annual Report.
4.5 Internal Audit Function
The Board has established an Internal Audit Function for the Group to review the adequacy of operational controls so as to provide reasonable assurance that such
system continues to operate satisfactorily and effectively in the Group and to add value and improve the Group’s operations by providing independent and objective
assurance.
The Internal Audit Function of the Group is performed in-house. It focused on:
a.
reviewing the adequacy and effectiveness of key controls.
b.
compliance to established policies and procedures as well as relevant statutory requirements.
c.
recommending improvements to existing procedures and policies in order to improve efficiency and effectiveness within the Group and the Company.
d.
performing special reviews requested by Management and/or the Audit Committee.
The Head, Group Internal Audit reports directly to the Audit Committee. The Internal Audit function of the Group is independent of the activities they audit and the
audit reviews are performed with impartiality, proficiency and due professional care.
The Board and/or the Audit Committee determines the general direction or remits of the Internal Audit function, which encompasses its main role, that is to evaluate
risk and monitor the effectiveness of the Group’s system of internal controls, consistent with the standards developed by the internal audit profession.
The Internal Audit function is competently and adequately resourced and independently positioned to assist the Board and the Audit Committee in obtaining the
assurance they require regarding the effectiveness of the Group’s system of internal controls.
Further details of the activities of the Internal Audit Function are set out in the Statement on Risk Management and Internal Control of this Annual Report.
Statement on
Corporate governance
38
Wah Seong Corporation Berhad • Annual Report 2014
