GHL System Berhad Annual Report 2020

51 A N N U A L R E P O R T 2 0 2 0 AUDIT AND RISK COMMITTEE REPORT CONT’D SUMMARY OF ACTIVITIES DURING FINANCIAL YEAR ENDED 31 DECEMBER 2020 (Cont’d) External Audit: a. Reviewed the performance, assessed the suitability and of the External Auditors’ 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 Accountant and the Group Policy Statement on Auditor Independence by covering the caliber of the external audit firm; quality of processes and performance during the audit; skills, industrial knowledge as well as objectivity; and their communications with ARC; b. Reviewed and discussed the External Auditors’ audit planning memorandum covering the 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 strategy and plan to ensure that their scope of work adequately cover the activities of the Group; c. Reviewed and discussed with the External Auditors on the audit results, audit reports, and financial statements of the Group; d. Reviewed and discussed with the External Auditors 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; e. Reviewed and discussed the non-audit fees in respect of services rendered by External Auditors if any, in line with the Group Policy Statement on Auditor Independence. During FY2020, non-audit services rendered by the External Auditors for the Group amounted to RM 11,306 (2019: RM28,970) for the review of Statement of Risk Management and Internal Control and tax computation review and declaration & account production. f. Reviewed the performance of the External Auditor by conducting an evaluation encompassing technical competencies; partners/directors accessibility and time commitment; independence and objectivity; audit scope and planning; audit and audit communications; and recommended to the Board on the re-appointment of BDO PLT as External Auditors and their fees. Risk Management and Internal Control: a. Reviewed the minutes of meeting and the progress of Risk Management Committee (“RMC”) in its on-going identification and monitoring of key risks and the controls and processes implemented in managing these risks; b. Reviewed the key risks as reported by the RMC in respect of businesses and operations; c. Reviewed the action plans by RMC to ensure significant internal controls are promptly implemented to mitigate the key risks identified; d. Evaluated, together with Group CEO, Group CFO, and Group CRO, 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; e. Monitored the Whistle Blowing programme as part of the risk management structure and good corporate governance practice; and f. Received updates from Management on matters relating to the impact of COVID-19 pandemic on the Group’s business and noted that the Group has relevant internal controls and various mechanisms in place to manage the impact of the pandemic and ensure continuity of business operations.