GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 43 AUDIT AND RISK COMMITTEE REPORT CONT’D ATTENDANCE OF MEETINGS (cont’d) The Group Chief Financial Officer (“CFO”) was invited to all ARC meetings to facilitate direct communication in relation to the Group financial results while the Risk Management Committee (“RMC”) Chairman i.e. Group Chief Executive Officer (“CEO”) was invited to all ARC meetings to provide information regarding the Group’s Risk Management activities. The Head of Group Internal Audit (“GIA”), relevant members of Management, and the External Auditors were also invited to attend the meetings of the Committee, where appropriate, to brief the ARC on the relevant audit findings. The ARC held two private meetings with the External Auditors in FY 2017 without the presence of the Management. At these meetings, the ARC enquired about Management’s co-operation with the External Auditors, their sharing of information and the competencies and adequacy of resources in the financial reporting functions, particularly in relation to the applicable Malaysian Financial Reporting Standards. The ARC Chairman also permitted the External Auditors to contact him at any time that they became aware of incidents or matters in the course of their audits or reviews that needed his attention or that of the ARC or Board. No such contacts were made during FY 2017. Minutes of each ARC meetings were recorded and tabled for confirmation at the following ARC meeting and subsequently presented to the Board for notation. SUMMARY OF ACTIVITIES DURING FINANCIAL YEAR ENDED 31 DECEMBER 2017 The ARC reports regularly to the Board on its activities, deliberations and recommendations in discharging its duties and responsibilities as set out in its Terms of Reference, which the Committee has reviewed to ensure it is in line with the Main Market Listing Requirements of Bursa Malaysia (“MMLR”), and the Malaysian Code on Corporate Governance (“MCCG”). The main activities undertaken by the Committee during the year are as below: Regarding financial reporting: a. Reviewed the Annual Report and the audited financial statements of the Group and the Company for FY 2017 together with the External Auditors and Group CFO to ensure compliance of the financial statements with the provisions of the Companies Act 2016 and the applicable approved accounting standards as per the Malaysian Accounting Standards Board (“MASB”) prior to recommending the same to the Board for approval. b. Reviewed the quarterly unaudited financial results of the Company and the Group for FY 2017 together with the Group CFO, focusing particularly on significant changes to accounting policies and practices, significant or unusual events, compliance with accounting standards and other legal requirements prior to recommending the same to the Board of Directors for approval and release to Bursa Malaysia. c. Reviewed with the Management of the Group to ensure corporate disclosure policies and procedures of the Group (pertaining to accounting, audit and financial matters) comply with the disclosure requirements as set out in the MMLR. d. Reviewed the progress of project on compliance to MFRS 9 and MFRS 15 implementation and status. Regarding external audit: a. Reviewed the performance and accessed the suitability of the External Auditor independence in fulfilling their responsibilities as set out in the By-Laws (On Professional Ethics, Conduct and Practice) for Professional Accountants as adopted by Malaysian Institute of Accounts; the Group policy on Auditors Independence by covering the calibre of the external audit firm; quality of processes and performance during the audit; skills, industrial knowledge and objectivity; and their communications with ARC. b. ARC had received from the External Auditors written confirmation on their independence and disclosed their policies on independence, safeguards and procedures to address threats or perceived threats to their independence and objectivity, and that they were in compliance with the independence requirements set out in the By-Laws (On Professional Ethics, Conduct and Practice) for Professional.