AUDIT COMMITTEE REPORT
(CONT’D)
Functions
The primary functions of the Audit Committee shall be: -
•
To review and discuss with the external auditors the following:-
(i)
the external audit plan (including the nature and scope of audit);
(ii)
their audit reports;
(iii) their evaluation of the system of internal controls;
(iv) problems and reservations arising from their external audits, and any matters the external auditors
may wish to discuss (in the absence of management, where necessary); and
(v)
their management letter and management’s response.
•
Recommend the nomination, appointment and suitability of re-appointment of external auditors, their fees
and any questions on resignation and dismissal.
•
Review the quarterly results and year end financial statements, prior to submission to the Board of Directors
for approval, focusing particularly on:-
(i)
changes in major accounting policies and practices;
(ii)
major judgemental areas, significant and unusual events;
(iii) the going concern assumption;
(iv) significant adjustments arising from the audit; and
(v)
compliance with accounting standards, regulatory and other legal requirements.
•
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, and to ensure that the Directors report such transactions annually to the shareholders vide the
Annual Report.
•
Review and approve the draft Annual Report prior to presentation to the Board of Directors for approval.
•
Review the following in respect of the internal audit functions:-
(i)
internal audit plan including the nature and scope of audit;
(ii)
adequacy of the scope and resources of the internal audit function and whether it has the necessary
authority to carry out its work;
(iii) the results of the internal audit findings, and the adequacy of management’s response and corrective
actions to be taken;
(iv) effectiveness of the internal audit function; and
(v)
appointment or termination of senior staff member of the internal audit function and to provide the
resigning staff an opportunity to submit his reasons for resigning.
•
Prepare reports, if the circumstances arise or at least once a year, to the Board of Directors summarising the
work performed in fulfilling the Audit Committee’s primary responsibilities.
•
Act on any matters as may be assigned by the Board of Directors.
•
Pentamaster Corporation Berhad
(572307-U)
Annual Report 2014
27
