Tropicana Corporation Berhad Annual Report 2019

Matters Relating to External Audit • Reviewed and discussed with the External Auditors’ Messrs. Ernst & Young PLT, on their significant audit findings in respect to the financial statements of the Group for the FY2018. • Held two (2) private sessions on 20 February 2019 and 22 November 2019 with the External Auditors without the presence of the Executive Directors and Management, to review key issues within their sphere of coverage and responsibilities in regards to the Audit of the Financial Statements of the Group for FY2018. It was noted that Audit Committee members had confirmed that they did not have any knowledge of fraud within the Group. • Reviewed the External Auditors’ Group Audit Plan, which outlines the audit strategy and approach for the FY2019. • Evaluated the External Auditors’ suitability, objectivity and independence, taking into consideration their competency, audit quality and manpower resource capacity in performing the audit of the Group. • Discussed and deliberated with the External Auditors on the scope of audit and non-audit related services, the concept of materiality, areas of audit emphasis, proposed fees comprising of audit fees and other fees and the audit timelines. • Reviewed the performance of the External Auditors and proposed to the Board for their subsequent recommendation to shareholders for re-appointment of the External Auditors at the Annual General Meeting. Matters Relating to Internal Audit • Reviewed and approved the Annual Internal Audit Plan for FY2019 proposed by the Internal Auditors to ensure adequate scope and coverage of the Group’s activities based on identified and assessed key risk areas. Also considered the adequacy of the manpower resources of the internal audit team to carry out the activities envisaged in the internal audit plan. • Reviewed the reports prepared by the Internal Auditors with regards to the findings of the audit activities in line with the internal audit programme, the recommendations and the management response. • Monitored the outcome of follow-up audits to ascertain the extent to which agreed action plans have been implemented by Management. • Reviewed the reports on recurrent related party transactions of revenue nature to monitor the thresholds of the recurrent related party transactions to ensure compliance with MMLR of Bursa Securities. Annual Reporting • Reviewed the Audit Committee report, Statement of Risk Management and Internal Control and the Additional Compliance Information to ensure adherence to legal and regulatory reporting requirements and appropriate resolution of accounting matters requiring judgement and recommended the same to the Board for approval. Others • Reviewed the business plan for the financial years 2019-2021. • Reviewed related party transactions that transpired within the Group to ensure that the transactions entered into were at arm’s length basis based on normal commercial terms and compliance with MMLR of Bursa Securities. E. INTERNAL AUDIT FUNCTION Overview The Audit Committee is supported by an independent and adequately resourced in-house Group Internal Audit Department (“ GIAD ”) in the discharge of its duties and responsibilities. The function of GIAD is guided by its Internal Audit Charter which defines the authority, duties, and responsibilities and independence of all GIAD members. GIAD is headed by Ms. Rachel Ng Kim Gek, an associate member of The Institute of Internal Auditors Malaysia, a member of CPA (Australia) and a member of Malaysian Institute of Accountants. GIAD reports functionally to the Audit Committee and maintains its impartiality, proficiency and due professional care. The principal responsibility of GIAD is to provide independent and objective assurance and advisory services designed to add value and improve the operations of the Group. This includes the continuous examination and evaluation of the adequacy and effectiveness of the Group’s risk management, internal control and governance processes. Audit Committee Report Tropicana Corporation Berhad Annual Report 2019 pg 100 About Tropicana Our Strategic Performance Our Leadership