GHL System Berhad Annual Report 2017

GHL SYSTEMS BERHAD 46 INTERNAL AUDIT FUNCTION (cont’d) The major activities undertaken by the internal audit function were as follows: • Developed an annual internal audit plan. • Continuous monitoring of the Group’s compliance with the MCCG Guide, Listing Requirements, rules and regulations. • Reviewed the adequacy and effectiveness of internal controls pertaining to key business processes of the Group’s subsidiaries. • Undertake follow up audits on the implementation of action plans committed by Management to ensure all previous audit findings highlighted are adequately addressed. • Investigations and special audit reviews • Identified areas of opportunities to improve operations and process. • Assisted the Committee and RMC in risk management function and facilitated the risk assessment of the Group. During the FY 2017, the GIA had conducted independent reviews on internal control and compliance for the following areas as per Internal Audit Plan approved by ARC:- • Risk Management • Sales Process • Human Resource Management • Fixed Asset Management • Policy and Procedure Review • Group’s compliance with the MCCG 2017, Listing Requirements and Payment Card Reform Framework by Bank Negara Malaysia. 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 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. The Committee considers the results of audits undertaken and evaluates the adequacy of management’s responses to matters raised. The Committee has allocated a reasonable budget to enable the GIA team to attend briefings, conferences and seminars organised by relevant professional bodies in order for the GIA team to stay abreast with the latest developments in auditing standards globally. The total cost incurred by GIA in discharging its functions and responsibilities, in respect of the financial year was approximately MYR 230,000. AUDIT AND RISK COMMITTEE REPORT CONT’D