Audit Committee Report

COMPOSItIOn anD attEnDanCE

The Audit Committee (AC) comprises five members, all of whom are Non-Executive Directors (NEDs), four being Independent NEDs and one a Public Interest Director (PID) who also satisfies the test of independence under the Main Market Listing Requirements (MMLR). This meets the requirements of paragraph 15.09(1)(b) of the MMLR. The AC members and their attendance records are outlined in the Corporate Governance Statement.

The AC Chairman, Tan Sri Datuk Dr. Abdul Samad Haji Alias, is a Fellow of the Institute of Chartered Accountants, Australia, a member of the Malaysian Institute of Accountants, and a member of the Malaysian Institute of Certified Public Accountants. Accordingly, Bursa Malaysia complies with paragraph 15.09(1)(c)(i) of the MMLR.

The Board reviews annually the terms of office of the AC members and assesses the performance of the AC and its members through an annual Board Committee effectiveness evaluation. The Board is satisfied that the AC and its members have been able to discharge their functions, duties and responsibilities in accordance with the Terms of Reference of the AC which are available on Bursa Malaysia’s website, thereby supporting the Board in ensuring appropriate Corporate Governance (CG) standards within the Group.

MEEtInGS

The AC held five meetings in 2013 without the presence of other Directors and employees, except when their attendance was requested by the AC. The Chief Executive Officer (CEO) was invited to all AC meetings to facilitate direct communication as well as to provide clarification on audit issues and the operations of the Group. The Senior Executive Vice President, Group Internal Audit who is also the Head of Group Internal Audit (GIA) and Departmental Heads of the respective GIA functions were present at all AC meetings to table the respective Internal Audit (IA) reports. The relevant Management of the audit subjects were invited to brief the AC on specific issues arising from the relevant audit reports.

As part of the AC’s efforts to ensure the reliability of Bursa Malaysia’s quarterly financial statements and compliance with applicable Financial Reporting Standards (FRS), External Auditors were engaged to conduct a limited review of Bursa Malaysia’s quarterly financial statements before these were presented to the AC for review and recommendation for the Board’s approval and adoption. In this respect, the lead audit engagement partner of the External Auditors responsible for the Group attended four AC meetings in 2013 to present the auditors’ report on the annual audited financial statements for 2012, as well as the auditors’ review reports on the unaudited quarterly financial statements together with the cumulative quarters for 2013.

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