Chemical Company of Malaysia Berhad Annual Report 2019

vi) Held private meetings and discussions with the Group Internal Auditor on significant audit and internal control matters. vii) Reviewed and approved the 2020 Annual Internal Audit Plan to ensure adequate coverage of the Group’s operations. viii) Reviewed the 2020 budget and Key Performance Indicators of the Group Risk, Integrity and Assurance Department. 4. Compliance and Integrity Function i) Reviewed related party transactions and conflict of interest situation that may arise within the Group including any transaction, procedure or course of conduct that raises questions of management integrity. ii) Reviewed all concerns raised through the Whistleblowing Hotline and authorised investigation(s), where necessary. iii) Deliberated on special investigation reports prepared by the Group Integrity Auditor and provided feedback on the actions taken by Management on the issues at hand. The progress of the significant cases was monitored until their closure. iv) Reviewed and recommended to the Board the proposed revision to the policies relating Anti-Bribery & Corruption matters, i.e. Gifts, Hospitality and Entertainment Policy and Whistle Blowing Policy. v) Monitored the Group’s compliance with environmental, safety and health regulations and other regulations such as the Malaysian Anti-Corruption Commission Act 2009 (“MACC Act”), Competition Act 2010, Whistleblower Protection Act 2010, Witness Protection Act 2009 and Data Protection. vi) Ensured the Group’s communication and training programmes on ethics, business integrity and Section 17A of the MACC Act were effective in reinforcing ethical values, integrity and further enhance good corporate governance. STATEMENT ON INTERNAL AUDIT FUNCTION The Group internal audit function (which resides in the Group Risk, Integrity & Assurance Department) conducted all audit assignments within the Group, supports the Audit and Compliance Committee by providing an independent, objective assurance and consulting services designed to add value and improve the company’s operations. (i) Reporting Line The internal audit function’s purpose, authority and responsibilities are stated in the Internal Audit Charter, which is approved by the Audit and Compliance Committee. The Charter also specified the positioning of the internal audit function that reports directly to the Audit and Compliance Committee, to promote independence and enable it to maintain objectivity to render unbiased judgements. The principal responsibility of the internal audit function is to undertake regular and systematic audit assessments on the operations of the CCM Group of Companies so as to provide reasonable assurance that such internal control systems and governance processes are adequate and continue to operate effectively and efficiently in achieving the objectives of the Group. | Report of the Audit and Compliance Committee | 92 CHEMICAL COMPANY OF MALAYSIA BERHAD