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GHL Systems Berhad
(293040-D)
Annual report 2015
Other activities:
a. Members of the Committee attended various seminars and conferences to enhance and update their
knowledge as part of discharging their duties as ARC members and as a director of the Group. The seminars
and conferences attended by the Committee members during FY 2015 are reported under the Statement
on Corporate Governance.
b. Reviewed the Statement of Risk Management and Internal Control and Corporate Governance Statement
prior to their inclusion in the Company’s Annual Report for FY 2015.
c. Reviewed a revised delegation of authority proposed by the Management to ensure completeness of
business decisions listedand the reasonableness of the spendingapproval thresholds; prior to recommending
to the Board for approval
d. Reviewed a revised bank signatory proposed by the Management to ensure reasonableness of the
payment approval thresholds; prior to recommending to the Board for approval.
e. Conducted a self-assessment to evaluate the Committee’s overall effectiveness in discharging its
responsibilities.
f.
Obtained update on Executives Share Scheme (“ESS”) from ESS Committee and verified allocation of ESS to
executives during FY 2015 as being in compliance with the ESS By-Law 5.2.
INTERNAL AUDIT FUNCTION
The Group has established an internal audit function as a key component of its internal control appraisal process.
The Group Internal Audit (“GIA”) reports independently to the ARC and is guided by a formalised Internal Audit
Charter.
The main responsibility of the GIA function is to undertake independent assessments on the adequacy and
effectiveness of internal controls pertaining to key areas as below:
• Reliability and integrity of financial and operational information;
• Effectiveness and efficiency of operations;
• Safeguarding of assets; and
• Compliance with applicable laws, and regulations.
In attaining this, the GIA undertakes Internal Audit reviews for the Group based on an annual internal audit
plan approved by the ARC. The GIA has also incorporated a structured internal audit rating methodology that
appraises an overall rating of an audit report by a scoring system. The said system provides the Management
and the ARC a consistent and concise assessment of the risks posed by the area or function being reviewed.
The results of all internal audit reviews together with recommendations are presented to the Management for
discussion and agreement on necessary corrective action plans. At each ARC meeting, the Head of Internal
Audit updates the ARC of the status of ongoing audits and where appropriate, presents internal audit reports
and observations. Relevant Management personnel are invited to be present to during such presentations.
Periodic follow up audits are also performed by the GIA in ensuring corrective actions arising from the previous
internal audit findings had been implemented accordingly.
Audit and Risk
Committee Report