Chemical Company of Malaysia Berhad Annual Report 2019

SUMMARY OF WORK DONE DURING THE FINANCIAL YEAR 1. Financial Reporting Process i) Reviewed the quarterly reports in respect of the results to ensure compliance to the Malaysia Financial Reporting Standards and regulatory requirements and recommended to the Board for subsequent release to Bursa Malaysia. ii) Reviewed the notes to the draft announcements of the audited and unaudited financial statements to Bursa Malaysia, to ensure compliance to the regulatory requirements. 2. External Audit Function i) Reviewed the external auditor’s audit plan and engagement strategy for the financial year ended 31 December 2019, covering the audit focus area, which also included a review on the IT systems, audit materiality and methodology. ii) Reviewed the external auditor’s report for the financial year ended 31 December 2018, including matters relating to adjustments arising from the external audit review and adequacy of disclosures, prior to making recommendations to the Board for approvals. iii) Deliberated on the observations highlighted by the external auditors arising from the interim and final audits, and the respective management action plans and status updates. iv) Reviewed the external auditor’s management letter and management’s responses. v) Held private meetings and discussions with the external auditors to allow for discussions on matters of concern. vi) Evaluated the performance, objectivity and independence of the external auditors in line with the Company’s Policy on External Auditor and made recommendations to the Board on the re-appointment and audit fees. vii) Reviewed the Directors’ Statement on Risk Management and Internal Control (SORMIC) for inclusion in the 2019 Annual Report. The SORMIC was supported by the Annual Assurance Statement on Risk Management and Internal Controls, which were signed off by the Group Managing Director. 3. Internal Audit Function i) Reviewed the scorecard and status reports of internal audit activities of the Group, on a quarterly basis, to ensure that all planned activities were properly carried out. ii) Deliberated on the internal audit reports prepared by the Group Internal Auditor, as well as the agreed Management’s action plans and deadlines for implementation and where necessary, instructed additional actions to be taken by Management in addressing the audit issues. iii) Monitored the status of corrective actions taken by Management, on quarterly basis, to ensure that all audit issues are adequately addressed within the agreed timeline. iv) Ensured the recommended principles and best practices of the Malaysia Code on Corporate Governance are implemented throughout the Group. v) Reviewed and recommended to the Board on special projects/corporate exercises entered into with Related Party(ies) so as to ensure that the terms are not more favourable to the Related Party(ies) than those generally available to the public and not to the detriment of the minority shareholders’ and that they are conducted at arms’ length and on normal commercials terms. BUSINESS OVERVIEW FINANCIAL STATEMENTS OTHER INFORMATION GOVERNANCE 91 ANNUAL REPORT 2019