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AEMULUS HOLDINGS BERHAD
A N N U A L R E P O R T 2 0 1 6
5. Uphold Integrity in Financial Reporting (Cont’d)
5.2 Relationship with Auditors
The Audit Committee discusses the nature and scope of audit and reporting obligations with the external auditors
before commencement of audit engagement.
A transparent and appropriate relationship with the auditors, both internal and external has been established
through the Audit Committee. The external auditors are invited to discuss the annual financial statements, their
audit plan, audit findings and other special matters that require the Board’s attention.
The Audit Committee is empowered by the Board to review all issues in relation to appointment and re-appointment,
resignation or dismissal of external auditors. The Audit Committee has assessed the suitability and independence
of the external auditors. The external auditors have confirmed that they are independent throughout the conduct
of audit engagement in accordance with terms of professional and regulatory requirements. Accordingly, the Audit
Committee has recommended the re-appointment of the external auditors at the Annual General Meeting of the
Company.
6. Recognise and Manage Risks
6.1 Internal Control and Risk Management
The Board recognises the importance of risk management and internal controls in the overall management
processes.
An overview of the state of internal controls and risk management within the Group is set out in this Annual Report
under the Statement on Risk Management and Internal Control.
The Board has an overall responsibility in maintaining a sound internal control system that provides reasonable
assurance of effective and efficient operations and compliance with the internal procedures and guidelines.
6.2 Internal Audit Function
The Group has outsourced the internal audit function to an independent professional firm, which is independent of
the activities and operations of the Group. The Internal Auditors work within the scope of an audit plan, which has
been approved by the Audit Committee, to review and test the adequacy and effectiveness of the internal controls
of the Group. The external Auditors will, in the course of their statutory audit, conduct a review of the internal
control procedures and highlight any internal control weaknesses which have come to their attention. All such
findings and recommendations made by the Internal and External Auditors are reported to the Audit Committee.
Any significant issues are discussed at the Audit Committee’s meetings.
The Internal Auditors will follow up on all its recommendations to ensure that management has implemented them
in a timely and appropriate fashion. The Internal Auditors support the Audit Committee in its role to assess the
effectiveness of the Group’s overall system of internal controls.
Details on the Statement on Risk Management and Internal Control are furnished in pages 39 to 40 of this Annual
Report.
7. Ensure Timely and High Quality Disclosure
7.1 Corporate Disclosure Policies and Procedures
Along with good corporate governance practices, the Company is committed to provide to investors and the
public with comprehensive, accurate and material information on a timely basis.
In line with this commitment and in order to enhance transparency and accountability, the Board has adopted
an Internal Corporate Disclosure Policies and Procedures to facilitate the handling and disclosure of material
information in a timely and accurate manner.
CORPORATE GOVERNANCE STATEMENT
(Cont’d)