QL Resources Berhad (428915-X)
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The Audit Committee has the authority to investigate any matter within its terms of reference, at the cost of the
Company and with the following:
(a) the resources which are required to perform its duties;
(b) full and unrestricted access to any information pertaining to the Company;
(c) direct communication channels with the External Auditors and the Internal Auditors;
(d) ability to obtain independent professional or other service; and
(e) ability to convene meetings with the External Auditors, the Internal Auditors or both, excluding the attendance of
other Directors and employees of the listed corporation, whenever deemed necessary.
The Internal Auditor shall report directly to the Committee and shall have direct access to the Chairman of the
Committee on all matters of control and audit. All proposals by Management regarding the appointment, transfer and
removal of the Internal Auditor of the Company shall require prior approval of the Committee. Any inappropriate
restrictions on audit scope are to be reported to the Committee.
3. FUNCTIONS OF THE COMMITTEE
(1) To review the quarterly and annual financial statements of the Company, before the approval of the Board of
Directors, focusing particularly on:
(a) significant accounting policies and practices;
(b) significant adjustments arising from the audits;
(c) compliance with accounting standards and other legal requirements; and
(d) the going concern assumption.
(2) To review any related party transaction and conflict of interest situation that may arise within the Company or the
Group including any transaction, procedure or course of conduct that raises questions of management integrity.
(3) To review, on an annual basis, the principal risks identified by Management and the methodology employed in
the identification, analysis, assessment, monitoring and communication of risks in a regular and timely manner.
(4) To ensure that the system of internal control is soundly conceived and in place, effectively administered and
regularly monitored.
(5) To cause reviews to be made of the extent of compliance with established internal policies, standards, plans and
procedures.
(6) To obtain assurance that proper plans for control have been developed prior to the commencement of major
areas of change within the organisation.
(7) To be satisfied that the strategies, plan, manning and organisation for internal auditing are communicated down
through the Company.
Specially:
(a) to review the internal audit plans and to be satisfied with their consistency with the results of the risk
assessment made, the adequacy of coverage and the audit methodology employed;
(b) to be satisfied that the internal audit function within the Company has the proper resources and authority to
enable them to complete their mandates and approved audit plans;
(c) to review status reports from internal audit and ensure that appropriate action is taken on the
recommendations of the internal audit function. To recommend any broader reviews deemed necessary as
a consequence of the issues or concerns identified;
(d) to review the effectiveness of the Internal Auditor and to approve the re-appointment, termination or
replacement of the incumbent and the appointment of any other Internal Auditor;
(e) to ensure internal audit has full, free and unrestricted access to all activities, records, property and personnel
necessary to perform its duties; and
(f) to request and review any special audit which it deems necessary.
Audit Committee Report
(Cont’d.)
