INTERNAL AUDIT FUNCTION
The Audit Committee is assisted by the Group Internal
Audit (GIA) of Boustead Holdings Berhad (the
Immediate Holding Company of Boustead Plantations
Berhad) whose principal responsibility is to evaluate
and improve the effectiveness of risk management,
control andgovernanceprocesses.This isaccomplished
through a systematic and disciplined approach of
regular reviews and appraisals of the management,
control and governance processes based on the review
plan that is approved by the Audit Committee annually.
The GIA function adopts a risk-based methodology in
planning and conducting audits by focusing on key
risks areas and activities that are aligned with the
Group’s strategic plans.
The terms of reference of the GIA function are clearly
spelt out in the Internal Audit Charter (Charter). GIA
has operated and performed in accordance to the
principles of the Charter that provides for its
independence. The GIA function reports directly to the
Audit Committee, and is independent of the activities
it audits. GIA has an adequately resourced internal
audit function to assist the Audit Committee and the
Board in maintaining an effective system of internal
control and overall governance practices within the
Company and the Group.
During the financial year, the GIA function had
undertaken the following activities:
• Prepared the annual audit plan for approval by the
Audit Committee.
• Performed risk-based audits based on the annual
audit plan, including follow-up of matters from
previous internal audit reports.
• Issued internal audit reports to the Management
on risk management, control and governance
issues identified from the risk-based audits
together with recommendations for improvements
for these processes.
• Undertook investigations and special reviews of
matters arising from the audits and/or requested
by the Management and/or Audit Committee and
issued reports accordingly to the Management.
• Reported on a quarterly basis to the Management
Audit Committee on significant risk management,
control and governance issues from the internal
audit reports issued, the results of investigations
and special reviews undertaken and the results of
follow-up of matters reported.
• Reported on a quarterly basis to the Audit
Committee the achievement of the audit plan and
status of resources of the Group’s internal audit
function.
• Conducted follow-up of the recommendations by
the external auditors in their management letter.
• Liaised with the external auditors to maximise the
use of resources and for effective coverage of the
audit risks.
• Reviewed the procedures relating to related party
transactions.
The total cost incurred for the GIA function in respect
of the financial year ended 31 December 2015
amounted to RM1.0 million.
an n ual repo rt 2015
3 9
