Wah Seong Corporation Berhad Annual Report 2018

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. The Board, upon the recommendation of the Audit Committee, concurred on the suitability and independence of the External Auditors and had therefore agreed to table the resolution for the re-appointment of the External Auditors to the Shareholders at the forthcoming 19 th AGM for their approval. Further information on the role of the Audit Committee with the External Auditors is stated in the Audit Committee Report on pages 36 to 40 of this Annual Report. 5.5 Internal Audit Function The Board has established an Internal Audit Function for the Group to review the adequacy of financial and operational controls so as to provide reasonable assurance that such system continues to operate satisfactorily and effectively in the Group and to add value and improve the Group’s operations by providing independent and objective assurance. The Internal Audit Function of the Group is performed in-house. It focused on: a. reviewing the adequacy and effectiveness of key controls. b. compliance to established policies and procedures as well as relevant statutory requirements. c. recommending improvements to existing procedures and policies in order to improve financial and operational efficiency and effectiveness within the Group and the Company. d. performing special reviews requested by Management and/or the Audit Committee. The Head, Group Internal Audit reports directly to the Audit Committee. The Internal Audit Function of the Group is independent of the activities they audit and the audit reviews are performed with impartiality, proficiency and due professional care. The Board and/or the Audit Committee determines the general direction or remits of the Internal Audit Function, which encompasses its main role, that is to evaluate risk and monitor the effectiveness of the Group’s system of internal controls, consistent with the standards developed by the internal audit profession. The Internal Audit Function is competently and adequately resourced and independently positioned to assist the Board and the Audit Committee in obtaining the assurance they require regarding the effectiveness of the Group’s system of internal controls. Further details of the activities of the Internal Audit Function are set out in the Statement on Risk Management and Internal Control on pages 65 to 67 of this Annual Report. CORPORATE GOVERNANCE OVERVIEW STATEMENT WAH SEONG CORPORATION BERHAD 62