Audit Committee Report |
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i. The AC considered the verification exercise conducted by Group IA on the ESOS allocation for FY2008 at its meeting on 14 November 2008 to ensure compliance with the criteria as approved by the Option Committee; j. At the meetings on 18 June 2008, 16 July 2008 and 21 October 2008, the AC reviewed and deliberated on reports by an independent consultant on the review of the BTS system prior to the launch of the system. On 29 January 2008, the AC reviewed a report by an independent external auditor in relation to the KLCI index problem on 13 August 2007; and k. At the meeting on 10 September 2008, the AC considered a report by an independent external auditor on the suspension of Bursa Malaysia's security trading on 3 July 2008 due to a system glitch. The suspension of derivatives trading for all instruments in the morning session on 8 September 2008 was also reviewed by the AC at the same meeting. INTERNAL AUDIT FUNCTION The Board obtains sufficient assurance of the effectiveness of the system of internal control in the Group, through a programme of regular reviews and appraisals conducted by the Group IA, which reports directly to the AC. The AC determines the adequacy of the scope, function and resources of IA function. The Group IA comprises 13 staff; Head of Group IA and four Departmental Heads with two Internal Auditors under each department for the performance of the IA function. In its endeavour to provide reasonable assurance on the state of internal control in the Group, the IA function carried out its reviews based on the Annual IA Plan for 2008 which was developed using a risk-based approach. The selection of audit assignments was based on the Divisional Risk Profiles of each division which was also mapped to the Corporate Risk Profiles approved by the Board. The main activities of the IA function include: 1. Performing operational audits on the following areas:
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