The Audit Committee (AC) assists and supports the Board’s responsibility to oversee the Company’s and REIT’s operations by providing a means for review of the Company’s and REIT’s processes for producing financial data, its internal controls, risk management activities and independence of the REIT’s internal and external auditors.
The functions of the Audit Committee are as follows:
- to review the quarterly and annual financial statements of the REIT before the approval of the Board;
- to review any related party transaction and conflict of interest situation that may arise within the Manager and the REIT including any transaction, procedure or course of conduct that raises questions of management integrity;
- to review, on bi-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;
- to ensure that the system of internal control is soundly conceived and in place, effectively administered and regularly monitored;
- to review extent of compliance with established internal policies, standards, plans and procedures;
- to obtain assurance that proper plans for control have been developed prior to the commencement of major areas of change within the organisation;
- to be satisfied that the strategies, plans, personnel and organisation for internal auditing are communicated down through the REIT;
- to review with the External Auditors the nature and scope of their audit plan, their evaluation of the system of internal controls and report;
- to review any matters concerning the appointment and reappointment, audit fee and any questions of resignation or dismissal of the External Auditors and Internal Auditors;
- to review and evaluate factors related to the independence of the External Auditors and assist them in preserving their independence;
- to be advised of significant use of the External Auditors in performing non-audit services, considering both the types of services rendered and the fees, such that their independence and objectivity as External Auditors are not deemed to be compromised;
- 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 Manager in order to be satisfied that appropriate action is being taken;
- 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;
- to prepare the annual Audit Committee Report to the Board which includes the composition of the Audit Committee, its terms of reference, number of meetings held, a summary of its activities for the financial year and the existence of an internal audit function and summary of the activities of that function for inclusion in the Annual Report;
- to review the Board’s statements on compliance with the Malaysian Code of Corporate Governance for inclusion in the Annual Report;
- to review ordinary and extraordinary dividend payments; and
- to recommend the nomination of a person or persons as External Auditors.
The Audit Committee comprises Independent Directors Encik Mahusni bin Hasnan as Chairman, Mr. Philip Eng Heng Nee, and Cik Rahanawati binti Ali Dawam.
During the financial year ended 31 December 2017, the Audit Committee has met four (4) times and deliberated on matters relating to their scope of function as listed earlier.
|Member||Audit Committee Meeting*|
|En Mahusni bin Hasnan
Independent Non-Executive Director/Chairman AC
|Mr Philip Eng Heng Nee
Independent Non-Executive Director
|Cik Rahanawati binti Ali Dawam
Independent Non-Executive Director
Note : The attendances reflected were during the Director’s tenure of service