28
Techno
Dex
Berhad
(627634-A)
ANNUAL REPORT 2016
vii.
Reviewed if there is any related party transactions and/or recurrent related party transactions that transpired
within the Group to ensure that the transactions entered into were at arm’s length basis and on normal
commercial terms.
viii.
Reviewed the Corporate Governance Statement, Audit Committee Report and Statement on Risk Management
and Internal Control to ensure adherence to legal and regulatory reporting requirement before recommending to
the Board for approval for inclusion in the Company’s Annual Report.
INTERNAL CONTROL REVIEW AND INTERNAL AUDIT FUNCTION
The Group outsourced its internal audit function to an independent professional services firm to conduct an independent
review of the Group’s systems of internal control. The firm appointed is independent of the activities carried out by
them.
Internal audit reports are presented, together with the Management’s response and proposed action plans to the Audit
Committee on a quarterly basis.
The Internal Auditors undertake internal audit functions based on the operational, compliance and risk based audit
plan that is reviewed by the Audit Committee and approved by the Board. This audit plan covers the review of the key
operational and financial activities including the efficacy of risk management practices, efficiency and effectiveness of
operational controls and compliance with relevant laws and regulations.
The works carried out by the Internal Auditors of the Group during the financial year under review were as summarised
below:-
i.
Conducted various internal audit engagements in accordance with the audit plan for the Company and the
Group. The Audit covers the areas on the internal control environment of the recruitment of foreign worker
functions and on the adequacy and effectiveness of the internal control system in revenue operation control,
trade receivable control and process flow on standard operating procedures of its subsidiaries.
ii.
Presentation of the internal audit findings at the quarterly Audit Committee meetings. The results of the audit
together with Management’s response and proposed action plans were reviewed by the Audit Committee.
iii.
Conducted follow up reviews and reported to the Audit Committee on the status of implementation to ensure
proposed action plans were properly and appropriately implemented by Management, especially on areas
where material internal control deficiencies or lapses have been noted. The relevant Management members
were made responsible for ensuring that agreed audit recommendations and/or corrective actions on reported
weaknesses have been appropriately addressed within the required timeframes.
The internal audits reviews did not reveal any weakness which would result in material losses, contingencies or
uncertainties that would require disclosure in the annual report.
The fees incurred during the financial year ended 30 April 2016 in relation to the internal audit function is RM24,000.
REPORT OF THE
AUDIT COMMITTEE
(continued)
