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GHL Systems Berhad
(293040-D)
Annual report 2015
Regarding external audit:
a. The Committee carried out an annual review of the performance of the external auditors, including an
assessment of their independence in fulfilling their responsibilities.
b. Reviewed the external audit scope, audit plan and proposed fees for the statutory audit and other non-
audit services based on the external auditors’ presentation of audit strategy and plan to ensure that their
scope of work adequately covered the activities of the Group.
c. Reviewed the audit results, audit reports, the issues and resolution highlighted in the management letter and
the response from the Management. The Committee also considered the external auditors’ suggestions to
improve the accounting procedures and internal control measures.
Regarding risk management and internal control:
a. Reviewed the progress of RiskManagement Committee (“RMC”) in its on-going identification andmonitoring
of key risks and the controls and processes implemented in managing these risks.
b. Reviewed the risk assessment results and the mitigation actions reported by RMC and regularly review the
update on the action plans to ensure significant internal controls are promptly implemented to mitigate the
risks identified.
c. Evaluated, together with Group CEO and Group CFO, the overall adequacy and effectiveness of the
system of internal controls during the financial year through a review of the results of work performed by
internal and external auditors and the RMC.
d. Continuously monitored whistleblowing program and procedures as part of the risk management structure
and good corporate governance practice.
Regarding internal audit:
a. Reviewed the adequacy of resources and reporting structure of GIA to execute the audit plan effectively
and independently.
b. Approved the annual internal audit plan for the financial year and reviewed the plan each quarter to identify
any requirement of changes; that commensurate with the evolving risk landscape of the organisation.
c. Reviewed internal audit findings arising from the work carried out by the GIA and other outsourced service
providers for special engagements. The ARC also sought Management’s commitment for corrective actions
as recommended in internal audit reports.
d. Reviewed the status of audit findings in ensuring appropriate action plans are implemented by the
Management; with no audit issues left unaddressed.
Regarding related party transaction:
a. Reviewed quarterly the related party transactions and recurrent related party transactions undertaken by
the Group for compliance with the MMLR and the appropriateness of such transactions entered into by
the Company and its subsidiaries to avoid potential or actual conflict of interest to ensure the decisions are
based on the best interest of the Company and its shareholders.
b. Reviewed the procedures for securing the shareholders’ mandate for recurrent related party transactions.
Audit and Risk
Committee Report