Wah Seong Corporation Berhad Annual Report 2018

5.2 Internal Control The Board has overall responsibility for maintaining a sound system of internal control, which encompasses risk management, financial, organisational, operational and compliance controls necessary for the Group to achieve its objectives within an acceptable risk profile. These controls can only provide reasonable but not absolute assurance against material misstatement, errors of judgment, loss or fraud. Information on the Group’s Internal Control is as set out in the Statement on Risk Management and Internal Control on pages 65 to 67 of this Annual Report. The establishment of an Internal Audit Department since the Group first commenced operations followed by the formation of the Risk Management Committee in 2009 are testimony of the dedication and commitment that the Board and the Company have in identifying and mitigating potential risks which affect the Group. 5.3 Principles of Business Conduct and Whistle-Blowing Policy The Board is committed to achieving and maintaining high ethical standards with regards to behavior at work and hence the Principles of Business Conduct are established. The Principles of Business Conduct of the Group is a formal document which sets out the guiding principles and standards in which the employees and Directors shall adhere to in conducting the day to day duties and operations. 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. CORPORATE GOVERNANCE OVERVIEW STATEMENT ANNUAL REPORT 2018 61