SCC Holdings Berhad Annual Report 2017

16 SCC Holdings Berhad (511477-A) | Annual Report 2017 External Audit d. Evaluated the technical competencies, adequacy of specialist support and partners/directors accessibility and time commitment. e. Ascertained the independence of the external auditor with the auditors and confirmed their independence status before conducting the audit. f. Reviewed the external auditors’ scope of work, audit plan and strategy for the year. g. Reviewed with the external auditors, the results of the annual audit, audit report, including the management’s response. h. Met with the External Auditors two (2) times without the presence of the Executive Directors and the Management to discuss matters that need to be highlighted to the AC. i. Evaluated auditor’s performance and recommendations for re-appointment in AGM. j. Met with the External Auditor to understand the reasons for resignation and proposed to Board for new appointment of auditor. k. Reviewed the new external auditor, UHY’s profile and made recommendations to the Board for the appointment of new auditor. Internal Audit l. Reviewed with the Internal Auditor, the internal audit plans, the internal audit reports, their evaluation of system of internal controls and the follow-up on the audit findings. m. Reviewed the adequacy of the scope and coverage of work and instructed specific audit area to be performed when the need arises. n. Received and discussed the internal audit reports after conclusion of every internal audit being carried out. Related Party Transactions o. Reviewed related party transactions within the Group on a quarterly basis. Others p. Reviewed the AC Report, Corporate Governance Statement and Statement on Risk Management and Internal Control prior to the submission of the said documents to the Board for consideration and approval so as to be included in the Annual Report for financial year ended 31 December 2017. INTERNAL AUDIT FUNCTION The Group’s internal audit function, which is outsourced to a professional service firm, assists the AC and the Board by providing independent assessment of the adequacy and effectiveness of the Group’s internal control systems. The internal audit function reports directly to the AC. The Internal Auditor carried out the following activities for the period:- a) reviewed and appraised the soundness, adequacy and application of financial and operational controls of the entire Group using approved risk based internal audit plan. b) recommended high risk areas to be audited and internal audit plan for 2017/2018. c) internal audit on the following areas:- i) business development and supplies management of Animal Health Products Division; and ii) warehousing management d) reviewed the current system covering business processes to ensure proper internal controls are embedded in these processes. e) monitored the implementation of the audit recommendations to ensure all key risks and controls have been addressed. The cost incurred for the outsourced independent internal audit services in respect of the financial year ended 31 December 2017 was RM29,500.00 (FYE 2016 – RM27,000.00). AUDIT COMMITTEE REPORT (CONT’D)