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Corporate
Governance
098
Gamuda Berhad (29579-T)
Annual Report 2013
x. the results of follow-up audits conducted by the Internal
Auditors on the Management’s implementation of
audit recommendations;
xi. related party transactions as required under the Listing
Requirements to ascertain that the transactions are
conducted at arm’s length prior to submission for
the Board’s consideration and, where appropriate,
shareholders’ approval; and
xii. share option allocations pursuant to the ESOS of the
Company during the financial year under review that
had been verified by the Internal Auditors. The Audit
Committee was satisfied that the allocation of share
options pursuant to the ESOS during the financial year
ended 31 July 2013 was in compliance with the criteria
set out in the ESOS by-laws and by the ESOS Committee.
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 2013 was RM1,146,190.