| ACCOUNTABILITY
AND AUDIT Financial Reporting
The Board is aware of its responsibilities to shareholders and
the requirement to present a balanced and comprehensive
assessment of the Group's financial position and prospects.
In this regard, the Directors are responsible for the preparation
of financial statements that give a true and fair view of the
state of affairs of the Group at the end of the financial year.
The Directors are responsible for keeping proper accounting
records, which disclose with reasonable accuracy at any time
the financial position of the Group, to enable them to ensure
that the financial statements comply with the Companies
Act, 1965 and approved Accounting Standards in Malaysia.
The Directors are also responsible for safeguarding the assets
of the Group and for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Internal Control
The Board recognizes the importance of maintaining a sound
system of internal control for the Group in order to safeguard
shareholders' interest of the Group's assets.
The Statement on Internal Control on page 052 of the Annual
Report provides an overview on the state of internal control
within the Group.
Risk Management
The report on Risk Management on pages 050 to 051 of the
Annual Report describes the structure and process of risk
management in the Group.
Audit Committee
The details are shown in the accompanying report of the Audit
Committee on pages 045 and 047.
Relationship with the External Auditors
The Group has always maintained a close, transparent and
professional relationship with its External Auditors i.e. Messrs
KPMG in seeking professional advice and ensuring compliance
with the accounting standards in Malaysia as well as the auditors'
professional requirements. Messrs KPMG has continued to
report to shareholders of the Company on its opinion which are
included as part of the Group's financial reports with respect
to their audit on each year's statutory financial statements. The
external auditors also highlight to the Audit Committee and Board
of Directors on matters that require Board's attention. The Audit
Committee held two meetings with the External Auditors without
the presence of the management during the financial year
under review.
Internal Audit
The Group has established an internal audit function which is
performed in-house by the Group Internal Audit Department that
reports to the Audit Committee.
The Audit Committee reviews and approves the audit plan, which
identifies the scope of work for the year.
Directors' Responsibilities in Relation to the Preparation of
the Audited Financial Statements
The Directors are required by the Companies Act, 1965
to prepare financial statements which are in accordance with
applicable approved accounting standards and give a true
and fair view of the state of affairs of the Group and the
Company at the end of the financial period and of the results
and cash flows of the Group and the Company for the
financial period.
In preparing the financial statements, the Directors have:
- Adopted suitable accounting policies and applied them
consistently;
- Made judgements and estimates that are prudent and
reasonable;
- Ensured that applicable accounting standards have been
followed; and
- Prepared the financial statements on going concern basis.
The Directors have prepared the annual financial statements
in compliance with Companies Act, 1965.
|