GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 37 PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT IV. AUDIT COMMITTEE 4.1 Audit and Risk Committee The Audit and Risk Committee takes on the role of assisting the Board in the discharge of its responsibility of overseeing the financial reporting process and ensuring that the results of the Company’s operations are fairly presented in its financial statements. A full Audit and Risk Committee Report enumerating its composition, summary of activities and the Group Internal Audit Function during the financial year is included in this Annual Report. 4.2 Compliance to Applicable Financial Reporting Standards The Board is committed to provide a balanced, clear and comprehensive assessment of the financial performance and prospects in all the disclosures made to the stakeholders and the regulatory authorities. The Board is responsible for ensuring that the financial statements give a true and fair view of the state of affairs of the Group as at the end of the reporting period and of their results and cash flows for the period then ended. The Board is assisted by the Audit and Risk Committee in governing the Group’s financial reporting processes and the quality of its financial reporting such as in compliance with Malaysian Financial Reporting Standards and International Financial Reporting Standards. 4.3 External Auditors The Board has adopted a Policy Statement on Auditor Independence on 28 November 2016 which delegates the responsibility to assess the suitability, objectivity and independence of the External Auditor to the Audit and Risk Committee. The Company’s Policy Statement on Auditor Independence is available on the Company’s official website at www.ghl.com . Through the Audit and Risk Committee, the Group has established transparent and appropriate relationships with the Group’s auditors, both external and internal. The total fee incurred for non-audit services rendered by the External Auditors during the financial year is disclosed in Note 6 of the Financial Statements section of this Annual Report. V. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK 5.1 Risk Management and Internal Control The Board acknowledges its responsibility for maintaining a sound system of risk management and internal control of the Group that provides reasonable assurance of effective and efficient business operations, compliance with laws and regulations as well as internal procedures and guidelines. The Board has delegated to the Audit and Risk Committee the responsibility of reviewing the effectiveness of control procedures and risk management framework and to report to the Board on all its findings and recommendations for deliberations. This system, by its nature, can however only provide reasonable but not absolute assurance against misstatement, fraud or loss. The Statement on Risk Management and Internal Control included in this Annual Report provides an overview of the state of risk management and internal controls within the Group. CORPORAT E GOVERNANCE OVERV I EW STAT EMENT C O N T ’ D