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Gamuda Berhad (29579-T) • Annual Report 2012
inTeRnAl AuDiT FunCTion AnD ACTiViTies
The internal Audit function of the Company is performed
in-house by its internal Audit Department. The internal
Audit Department reports directly to the Audit Committee.
The internal Audit Department adopts a risk-based audit
approach when preparing its annual audit plan which is
approved by the Audit Committee. The annual audit plan
covers the business units and projects of the Group.
The principal role of the internal Audit Department is
to provide independent and objective reports on the
effectiveness of the system of internal controls within the
business units and projects of the Group.
During the year, the internal Audit Department has
undertaken independent audit assignments on business
units and projects of the Group in accordance with the
approved annual audit plan. The resultant audit reports
were presented to the Audit Committee for deliberation and
forwarded to the Management for the necessary corrective
actions to be taken.
A summary of the internal Audit activities during the financial
period is as follows:
i. prepared its annual audit plan for consideration by the
Audit Committee;
ii. performed operational audits on business units and
projects of the Group to ascertain the adequacy and
integrity of their system of internal controls and made
recommendations for improvement where weaknesses
were found;
iii. conducted follow-up reviews to determine the adequacy,
effectiveness and timeliness of action taken by the
Management on audit recommendations and provided
updates on their status to the Audit Committee;
iv. reviewed related party transactions; and
v. reviewed the allocations of share options pursuant to
the esos during the financial year to verify whether they
were in accordance with the criteria set out in the esos
by-laws and by the esos Committee.
Total cost incurred for the internal Audit Department for the
financial year ended 31 July 2012 was RM 1,036,150.