Wah Seong Corporation Berhad Annual Report 2017

GOVERNANCE WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 55 5.3 Principles of Business Conduct and Whistle-Blowing Policy (cont’d) In conjunction with the above, the Company has also disseminated its Whistle Blowing Policy and Procedures by which an employee or stakeholder can report or disclose in good faith, through the established channel, genuine concerns about unethical behaviour, malpractice, illegal act or failure to comply with regulatory requirements. The Principles of Business Conduct and procedures of the Whistle Blowing Policy, in raising such genuine concerns to the established channels are available on the Company’s website at www.wahseong.com . 5.4 Relationship with Auditors The Board has established a formal and transparent relationship with the External Auditors appointed by the Company and its subsidiaries within its fold. The External Auditors are invited to attend the Audit Committee Meeting where the Group’s annual financial results are considered, as well as at meetings to review and discuss the Group’s audit findings, internal controls and accounting policies, whenever the need arises. For the financial year under review, the Audit Committee had two (2) meetings with the External Auditors without the presence of Management, which has encouraged a greater exchange of independent, frank views and opinions/ dialogue between both parties. The Audit Committee obtains written confirmation from the External Auditors on their independence throughout their terms of engagement for the financial year in compliance with the requirements of the relevant professional and regulatory bodies and/or authorities. The Board also reviews the External Auditors’ annual audit plan and scope of work for each of the financial years and the External Auditors’ audit review on the financial statements for each of the financial years together with their audit report. The Annual Assessment Form for External Auditors is established to assess the annual performance of the External Auditors by the Audit Committee. During the financial year under review, the Audit Committee had reviewed the independence of the External Auditors’ by taking into consideration among other factors, the following:- • rotation of the External Audit Partner-in-charge once in every five years in accordance with the relevant laws and requirements; and • the professionalism, openness in communication and interaction with the External Auditors through private discussions which had demonstrated their independence. The Audit Committee also assessed the suitability of the External Auditors by taking into consideration among other factors, the following:- • size, sufficiency of the allocated resources and geographical coverage of the external audits being conducted; • calibre, competency, requisite skills and expertise, including industry knowledge of the audit team to effectively audit the Company and the Group that meet the requirements; • adequacy of audit scope and plan to address the accounting risks, audit risk and financial reporting risks faced by the Company and the Group; • quality and effectiveness of the audit services provided by the External Auditors; and • the External Auditors met their performance targets as expected of them. Based on the results of the annual assessment on External Auditors carried out during the financial year under review, the Audit Committee was satisfied with the independence and suitability of the External Auditors and hence had recommended the re-appointment of the External Auditors for the Board’s consideration. CORPORATE GOVERNANCE OVERVIEW STATEMENT