Sasbadi Annual Report 2021

52 SASBADI HOLDINGS BERHAD • Reviewed and discussed with the external auditors, BDO PLT, on their audit plan for the FYE 31 August 2021 covering the audit scope, audit methodology, timetable and milestones, audit materiality, audit focus areas and reported observations in prior year’s audit, before endorsing and recommending to the Board for adoption; and • Reviewed the audit and non-audit fees of the external auditors for the FYE 31 August 2021 before recommending for the Board’s approval. Internal audit • Reviewed, discussed and approved the outsourced internal auditors’ audit plan (covering the scope of work, subsidiaries being audited, estimated number of man-days, audit schedule and reporting timeline) and fees for the FYE 31 August 2021 before recommending for the Board’s endorsement; and • Reviewed and deliberated on the outsourced internal auditors’ reports as detailed in the Internal Audit Function section below. The Audit Committee took note that, overall, the internal control environment for the functional areas/sections covered by the outsourced internal auditors for the FYE 31 August 2021 is considered “average” where controls are generally in place with some actions for improvement required. Risk management • Reviewed the updated Registry of Risks and Risk Matrix prepared by the Risk Management Team (“RMT”), whereby the total number of risk factors and ratings remained. The Audit Committee also take note of the changes in the suggested risk control action. INTERNAL AUDIT FUNCTION The internal audit function of the Group is outsourced to Sterling Business Alignment Consulting Sdn Bhd, an external professional firm which is independent of the activities and operations of the Group. They carried out review on the adequacy of the internal control system of the Group. The outsourced internal auditors report directly to the Audit Committee. A summary of the work carried out by the outsourced internal auditors during the FYE 31 August 2021 is as follows: • Prepared and presented an internal audit plan for the FYE 31 August 2021 to the Audit Committee. The focus of the internal audit plan for the FYE 31 August 2021, as approved by the Audit Committee was on major subsidiaries of the Company; • Undertook the internal control assessment in accordance with the internal audit plan for the FYE 31 August 2021, covering the following companies and functional areas/sections: • The Malaya Press Sdn Bhd, Big Tree Publications Sdn Bhd and Jinbang Publications Sdn Bhd – Sales and Marketing – Procurement • Sasbadi Holdings Berhad, MindTech Education Sdn Bhd and Sasbadi Online Sdn Bhd – Management Information Systems (including I-Learn Ace) • Undertook follow-up review on previously reported audit findings to ensure weaknesses identified have been or are being addressed; and • Presented the reports on internal control assessment setting out their findings and recommendations, and Management’s responses and actions, to the Audit Committee for deliberation. The fees incurred by the Group in relation to outsourced internal audit function for the FYE 31 August 2021 were RM30,000. AUDIT COMMITTEE REPORT (continued)