Annual Report 2016
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(8) To consider and recommend the nomination and appointment or re-appointment of External Auditors.
(9) To review with the External Auditors the nature and scope of their audit plan, their evaluation of the system of
internal controls and report.
(10) To review any matters concerning the appointment and re-appointment, audit fee and any questions of resignation
or dismissal of the External Auditors and Internal Auditors.
(11) To review and evaluate factors related to the independence of the External Auditors in performing non-audit
services within the Group, considering both the types of services rendered and the fees to be paid, such that
their independence and objectivity as External Auditors are not compromised.
(12) To review and approve when applicable, significant use of the External Auditors and assist them in preserving
their independence.
(13) To review the External Auditors’ findings arising from audits, particularly any comments and responses in
management letters as well as the assistance given by the employees of the Group in order to be satisfied that
the level of co-operations given is appropriate.
(14) To recommend to the Board steps to improve the system of internal control derived from the findings of the Internal
and External Auditors and from the consultations of the Audit Committee itself.
(15) To prepare the annual Audit Committee Report to the Board which includes the composition of the Audit
Committee, its term of reference, number of meetings held, a summary of its activities and the existence of an
internal audit function and summary of the activities of that function for inclusion in the annual report.
(16) To assist the review of the Board’s statements on compliance with the Malaysian Code of Corporate Governance
for inclusion in the annual report.
(17) To review the assistance given by the employees of the Company to the External Auditors.
4. ATTENDANCE AT MEETINGS
The Company must ensure that other Directors and employees attend Audit Committee meeting only at the Audit
Committee’s invitation and specific to the relevant meeting. At least twice a year the Committee shall meet with the
External Auditors excluding the attendance of other Directors and employees of the Company and whenever deemed
necessary.
5. PROCEDURE OF THE COMMITTEE
(a) The internal and external auditors and members of the Committee may call for the Audit Committee meeting
which they deem necessary.
(b) The notice of such meeting shall be given at least 7 days before the meetings unless such requirement is waived
by the members present in the meeting.
(c) The voting and proceedings of such meetings shall be on show of hands. The Chairman shall have a casting
vote.
(d) The minutes shall be kept by the secretarial department and shall be available for inspection during working hours
at the request of the Directors and members.
Audit Committee Report
(Cont’d.)
