GHL System Berhad Annual Report 2017

GHL SYSTEMS BERHAD 44 AUDIT AND RISK COMMITTEE REPORT CONT’D SUMMARY OF ACTIVITIES DURING FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) Regarding external audit: (cont’d) c. Reviewed and discussed with the External Auditors’ audit planning memorandum covering audit scope, audit plan, key audit areas and proposed fees for the statutory audit and other non-audit services based on the External Auditors’ presentation of audit strategies and plans to ensure that their scope of work adequately covered the activities of the Group. d. Reviewed and discussed with the External Auditor on the audit results, audit reports and financial statements of the Group. e. Reviewed and discussed with External Auditor on the issues highlighted in the management letter, the response from the Management and ensure, where appropriate, necessary corrective actions had been taken by Management. ARC also considered the External Auditors’ suggestions to improve the accounting procedures and internal control measures. f. Reviewed and discussed the non-audit fees in respect of services rendered by External Auditors, if any, are in line with the Group Auditor Independence policy. During FY 2017, non-audit fees amounting to RM5,400 had been rendered by External Auditors for the review of Statement of Risk Management and Internal Control in the Annual Report. g. Recommend to the Board on the re-appointment of External Auditor and their remuneration. Regarding risk management and internal control: a. Reviewed the progress of Risk Management Committee (“RMC”) in its on-going identification and monitoring of key risks and the controls as well as processes implemented in managing these risks. b. Reviewed the risk assessment results and the mitigation actions reported by RMC, and regularly review the updates 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 Auditors, 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. e. Reviewed the results of ad hoc investigative reports on internal misconduct and suspicion of fraud with the Group tabled during the year and ensured appropriate remedial actions and measures were taken.