Internal Audit

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Acknowledgement

In the name of Allah, the Most Gracious, the Most Merciful

Alhamdulillah, all praises and gratitude to Allah the All Mighty for his blessings and also for giving us the strength and patience to complete the comparative study of annual report. First of all we would like to express our thankfulness to

She has indeed given us high encouragement and really put an effort to make sure we complete the assignment successfully. Her invaluable help of such constructive criticisms and suggestions throughout the making of this task have contributed to the accomplishment of this assignment.

We would like to express appreciation to our classmates especially Harina, Amira, Afifah and others for their kindness help and moral supports towards the affairs. Thanks for the friendship and for being such a helping hand.

Last but not least, our deepest gratefulness goes to our beloved parents and siblings for their endless love, prayers and support. Saying thank you is just not enough as to compare what they has taught and guided us during the hard time.

Simply put, to those who indirectly contributed in this assignment, your kindness means a lot to us. Thank you very much.

Introduction

With the rise in consciousness and increasing attempt by the legal bodies in order to boost the understanding of accounting practices, it is becoming a good alternative to do analysis on annual report of public listed company in Malaysia.

This report provides information obtained through comparative analysis of the annual report, regarding the compliance on it statutory requirements and how they interpret their corporate governance. It is indeed a crucial topic as to ensuring maximum shareholder’s value and enhancing investor’s interests towards the organizations. The report will comment on the level of voluntary disclosure of both organizations such as corporate social responsibility and environmental issues.

Basically, this study looks thoroughly on two organizations of distinct specialized industry sectors. For this comparative study of annual report, the comparison will be on plantation industry which is TH Plantations Berhad (THP). While on the other side is product industry which will be Thong Guan Industries Berhad (TGI).

Eventually, we will soon go deeper on the matter respectively. The issue as well consists of a review on its business and economic literature whereby we will go in detail for each of the organization. This is essential as to further understand how they generate and maintaining their earnings. In addition, this report presents the observations on the peculiar matter to the annual reports.

At the end, the result of the comparison on the annual reports, will give some ideas about the recognition, measurement and other current issues in the real world practice.

Corporate Governance

Corporate governance can be define as the process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholders value, whilst taking into account the interest of other stakeholders. To ensure that good corporate governance are maintained by these companies, the 4 pillars of corporate governance which are accountability, fairness, transparency, and independence must be achieved by both companies.

The Board of Directors from TH Plantations Berhad and Thong Guan Industries Berhad is committed to ensure that appropriate standards of corporate governance are practiced throughout the Group in line with the Malaysian Code on Corporate Governance (MCCG) as part of their responsibility to protect and enhance shareholder value.

Based on our finding, THP has made every effort to comply and to maintain the highest standards of...
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