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GOVERNANCE
91
Bursa Malaysia •
Annual Report 2015
AUDIT COMMITTEE
REPORT
ii. The going concern basis applied in the Annual Financial
Statements and Condensed Consolidated Financial
Statements was appropriate;
iii. Prudent judgements and reasonable estimates had been
made in accordance with the requirements set out in the
MFRSs;
iv. Adequate processes and controls were in place for effective
and efficient financial reporting and disclosures under the
MFRSs and MMLR; and
v. The Annual Financial Statements and Quarterly Condensed
Consolidated Financial Statements did not contain material
misstatements and gave a true and fair view of the financial
position of the Group and the respective companies within
the Group for 2015.
c. On 26 January 2015, the CFO sought the AC’s approval for the
proposed audit and non-audit services to be provided by the
External Auditors for 2015 (“Annual Plan 2015”) in accordance
with the Auditor Independence Policy.
2. External Audit
a. With reference to the Auditor Independence Policy duly approved
by the Board on 29 June 2006, which required that the lead and
concurring audit partners who are responsible for the financial
statements of Bursa Malaysia Group be subject to a five-year
rotation with a five-year cooling-off period, Mr. Chan Hooi Lam
was due for rotation as lead audit partner in 2015 and was
replaced by Encik Megat Iskandar Shah bin Mohamad Nor who
will be rotated in 2020. Mr. Abraham Verghese, who became the
audit concurring partner on 1 October 2014 to replace Ms. Gloria
Goh who retired as a partner of Messrs Ernst & Young (“EY”) on
30 September 2014, will be due for rotation in 2019.
Hence, the lead audit engagement partner of the External
Auditors, Mr. Chan Hooi Lam, attended the first AC meeting
in 2015 to present the auditors’ report on the annual audited
financial statements for 2014. EY confirmed that they were
and had been independent throughout the conduct of the
audit engagement in accordance with the terms of all relevant
professional and regulatory requirements, including the By-laws
(on Professional Ethics, Conduct and Practice) of the Malaysian
Institute of Accountants.
b. The AC at its first meeting held on 26 January 2015 conducted
an internal review of audit fees against the audit fees of financial
institutions in Malaysia and other stock exchanges. The AC
also undertook an annual assessment of the suitability and
independence of the External Auditors in accordance with the
Auditor Independence Policy, having regard to several factors
including the adequacy of experience and resources of the firm
and the professional staff assigned to the audit; and the level
of non-audit services to be rendered by External Auditors to the
Company for the financial year (“FY”) 2015. Being satisfied with
EY’s performance, technical competency and audit independence
as well as fulfilment of the criteria as set out in the Auditor
Independence Policy, the AC recommended to the Board for
approval of the appointment of EY as External Auditors for the FY
2015, with the rotation of audit engagement partner in 2015.
With the shareholders’ approval of the appointment of EY as
External Auditors for the FY 2015 on 31 March 2015, Encik
Megat Iskandar Shah bin Mohamad Nor of EY, being the lead
audit engagement partner for the first year in 2015, presented
the auditors’ review reports on the unaudited quarterly financial
statements together with that of the relevant cumulative quarters
in accordance with the International Standard on Review
Engagements 2410 “
Review of Interim Financial Information
Performed by the Independent Auditor of the Entity
” at the
quarterly AC meetings in 2015 and January 2016.
c. The AC deliberated on the External Auditors’ report at its meeting
on 26 January 2015 with regard to the relevant disclosures in the
annual audited financial statements for 2014.
d. On 26 January 2015, the AC reviewed the list of services in the
Annual Plan 2015 which comprised the audit services, non-
recurring and recurring non-audit services that may be provided
by the External Auditors. The non-recurring non-audit services
that were expected to be utilised in 2015 were ad hoc accounting
and tax advisory services including that on Goods and Services
Tax (“GST”) implementation as well as its post implementation
review. The recurring non-audit services were in respect of tax
compliance, services as scrutineers at Bursa Malaysia’s AGM,
the annual review of the Statement on Internal Control and
Risk Management and limited reviews of quarterly financial
statements. In considering the nature and scope of non-audit
fees, the AC was satisfied that they were not likely to create any
conflict of interest nor impair the independence and objectivity of
the External Auditors.