GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 60 INTERNAL AUDIT FUNCTION (Cont’d) The major activities undertaken by the GIA function were summarised as follow:- a. Prepared, presented, and obtained approval from ARC for the Group’s annual internal audit plan; b. Collaborated with Group Legal and Compliance Department to continuously monitor the Group’s compliance with the MCCG Guide, MMLR, the relevant rules and regulations; c. Reviewed the adequacy and effectiveness of internal controls pertaining to key business processes of the Group; d. Undertook follow-up audits on the implementation of action plans committed by Management to ensure all previous audit findings highlighted are adequately addressed; e. Identification of areas of opportunities for improvement in respect of operations and processes; f. Attended RMC as an observer to provide the ARC with an independent assessment of the adequacy and reliability of the risk management processes and compliance with risk policies; g. Reviewed Recurrent Related Party transactions annually; and h. Reviewed allocation of ESS shares to Executives. During the FY2019, the GIA had conducted independent reviews on internal control and compliance for the following areas as per Internal Audit Plan approved by ARC: z Fixed Asset Management z Inventory Management z Merchant Sales Management z Settlement Process z Merchant Sales Process The results of all internal audit reviews together with the 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. ARC considers the results of audits undertaken and evaluates the adequacy of Management’s responses to matters raised. The Company has allocated a reasonable budget to enable the GIA team to attend briefings, conferences, and seminars organised by the 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 RM280,000. AUDIT AND RISK COMMITTEE REPORT CONT’D