Audit Committee Report

2. Performing IS and IT audits on the following areas:
a. Facilities management functions supporting the core application systems of the Group;
b. IT project management of the Group;
c. Systems development and maintenance of core application systems of the Group; and
d. IT related functions supported by third party vendors.

3. Providing assurance and performing compliance review for:
a. Tenders and significant procurement exercises;
b. System Readiness Review on key system development projects; and
c. Monitoring employees' compliance to Securities Transaction Policy
d. Undertaking investigations on any suspicion of fraud or operational failures reported to them within the Group.

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In addition to the above, the Internal Auditors completed 12 system readiness reviews and also participated in 19 tender reviews as an independent observer. The results of the audits provided in the IA reports were reviewed by the AC. The relevant management of the auditee was responsible for ensuring that corrective actions on reported weaknesses were taken within the required time frame. The Group IA checked with the management of the auditee to ensure that management's corrective action was implemented accordingly and provided update on the status of such action in their IA reports. In this respect, the IA has added value by improving the control process in the organisation.

All IA activities for FY2008 were conducted by the in-house audit team. There were no areas of the IA function which were outsourced.