Financial Reporting

7.1 Transparency

7.1.1

The Company aims to present a balanced and understandable assessment of the Lii Hen Group’s financial position and prospects that extends to the interim and price-sensitive information and other relevant reports submitted to regulators.

7.1.2

The Directors ensure that the financial statements are prepared so as to give a true and fair view of the current financial status of the Company in accordance with the approved accounting standards.

7.1.3

The Company’s practice is to announce to Bursa Securities its condensed quarterly financial results as early as possible within two (2) months after the end of each quarterly financial period.

7.1.4

The Auditors’ Report shall contain a statement from the Auditors explaining their responsibility in forming an independent opinion, based on their audit, of the financial statements.

7.1.5

The Board is assisted by the Audit Committee to oversee the Company’s financial reporting processes and the quality of its financial reporting.

 

7.2 

 

External Auditors

7.2.1

The Board has established formal and transparent arrangements for considering how financial reporting and internal control principles will be applied and for maintaining an appropriate relationship with the external auditors through its Audit Committee.

7.2.2

The Audit Committee also keeps under review the scope and results of the audit and its cost effectiveness and the independence and objectivity of the external auditors. The Company ensures that the external auditors do not supply a substantial volume of non-audit services to the Company.

7.2.3

Appointment of the external auditors is subject to approval of shareholders at Annual General Meetings (AGM). The external auditors have to retire during the AGM every year and be re-appointed by shareholders for the ensuing year.

 

7.3 

 

Internal Controls and Risk Management

7.3.1

The Company has a well-resourced internal audit function, which critically reviews all aspects of the Company’s activities and its internal controls. Comprehensive audits of the practices, procedures, expenditure and internal controls of all business and support units and subsidiaries are undertaken on a regular basis. The outsourced internal audit consultants have direct access to the Board through the Chairman of the Audit Committee.

7.3.2

The Board ensures the system of internal controls is reviewed on a regular basis.

7.3.3

The Audit Committee receives reports regarding the outcome of such reviews on a regular basis.