At the Board Meetings, the Chairman of the BAC highlights key audit issues and overall decisions and resolutions made during the BAC Meetings to the Board Members. During the financial year, GIA had carried out audits according to the internal audit plan approved by the BAC. The total cost incurred in discharging the internal audit functions during the financial year ended 31 December 2014 was RM6.231 million. The conduct of internal audit work is governed by the Internal Audit Charter and the Internal Audit Charter Memorandum. In addition, the internal audit work also conforms to the Institute of Internal Auditor’s International Standards for the Professional Practice of Internal Auditing. STATEMENT ON RRPTs The BAC has reviewed the internal guidelines pertaining to the governance of Related Party Transactions (“RPTs”) and RRPTs as outlined on pages 124 to 125 of this Annual Report and is of the view that the said guidelines are sufficient to ensure that the RPTs and RRPTs are fair, reasonable and in the best interest of the Group. The BAC is satisfied that the Group has put in place adequate procedures and processes to monitor, track and identify RPTs and RRPTs in a timely and orderly manner to ensure that the RPTs and RRPTs are, at all times, carried out on normal commercial terms and consistent with the Group’s practices and are not to the detriment of the minority shareholders. The procedures and processes will be reviewed from time to time based on recommendations from the internal audit team of the Company. The GIA has also conducted an audit on RPTs and RRPTs as at 31 December 2014 and reviewed the internal control process and records of RPTs and RRPTs within the affected scope to verify the procedures and relevant approvals have been obtained. The established procedures are adequate and RPTs and RRPTs are fairly concluded on prevailing market rates/prices, normal commercial terms/ conditions, applicable industry norms and not detrimental to the interests of MISC and its minority shareholders. The audit report was tabled to the BAC on 4 February 2015. This statement is made in accordance with the resolution of the Board of Directors of MISC duly passed on 24 February 2015. p 139 MISC BERHAD - Annual Report 2014
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