Governance Statement
Digital annual report 2016
Audit Committee Report
As at the date of issuance of this Integrated Annual Report, the composition of the audit committee consists of three (3) members as follows:

For the financial year ended 31 December 2016, prior to the delisting of the company on 4 August 2016, the Audit Committee consist of three (3) directors of Kulim (Malaysia) Berhad. The composition of the Audit Committee prior to the delisting was as follows:

The attendance record of the members of the Audit Committee during the financial year 2016 prior to the delisting of the Company was as follows:


Kasmawati Kasian
Head of Internal Audit
The Group’s Internal Audit function is carried out by the Internal Audit Department (“IAD”) and led by a Certified Internal Auditor (“CIA”). The IAD reports directly to the Audit Committee and is guided by its Internal Audit Charter. The IAD assists the Board in fulfilling its fiduciary responsibilities over the areas of financial, operational, information systems, investigations, risk management and governance process in accordance with the approved Risk Based Annual Audit Plan.

On quarterly basis, the IAD provides the Audit Committee with independent and objective reports on the state of internal control, highlighting any areas for improvement and updates on the extent to which the recommendations have been implemented. The management is responsible to ensure that corrective actions on reported weaknesses as recommended are taken within the required time frame to ensure that all potential weaknesses in system and risks under reviewed area are mitigated or remain within acceptable levels.

The External Auditors issue a Management Letter highlighting issues and weaknesses, which came to their attention during the conduct of their normal audit procedures. The Group’s Internal Audit subsequently performs follow-up reviews to determine the extent to which the recommendations have been implemented.

The IAD operates within the Audit Charter approved by the Audit Committee and performs internal audit across the Group’s diverse areas and environment focusing on any management, accounting, financial and operational activities including the effectiveness of risk management process and internal control within the organisation. In year 2016, the audit coverage was focused on high risk areas which were identified by leveraging the organisation’s risk management framework as well as IAD’s own risk assessment. It also covered management request as well as consulting activity which are in line with the Audit Charter.

The Group’s Internal Audit maintains a Quality Assurance and Improvement Programme (“QAIP”) and continuously monitors its overall effectiveness. In year 2016, periodic assessment to evaluate conformance with the International Standards for the Professional Practice of Internal Auditing (“Standards”) was conducted by the department. The total cost incurred for the Internal Audit function at the Group’s Corporate Office level for the financial year ended 31 December 2016 was approximately RM2,140,000.