Wah Seong Corporation Berhad Annual Report 2020

45 ANNUAL REPORT 2020 3.8 Others a. The AC had been progressively reviewing the strategic investments of the WSC Group during the financial year under review and in making the necessary decisions. b. The AC had been progressively reviewing the internal control issues of the WSC Group and the relevant improvements and recommendations as highlighted by both the External and Internal Auditors. c. The AC had reviewed the revised Internal Audit Manual of WSC Group at the AC Meeting held on 20 May 2020 and the same was recommended to the Board of Directors for their endorsement and approval. d. The AC reviewed and discussed on the adoption of the Anti-Bribery and Corruption Policy at the AC Meeting held on 18 February 2020 and the same was recommended to the Board of Directors for their review and approval. 4. INTERNAL AUDIT FUNCTION The AC is assisted by the Group Internal Audit (“GIA”) in providing independent and objective assurance to the Group to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance. The Head of GIA has functional reporting to the Audit Committee and administratively reports to the Managing Director/Group Chief Executive Officer and the Deputy Managing Director. The GIA had conducted risk-based audit engagements as stipulated in the Annual Audit Plan for financial year 2020 (“FY 2020”). Significant audit findings with regards to risk, control and governance covered various scope of review which had high impact were discussed with senior management, of which also including the agreed action plans committed by the line management. The audit reports were presented quarterly to the AC for deliberation. Follow up review on the audit engagements were also conducted particularly for findings with high impact to ensure proper and effective remedial actions have been taken by the line management to close control gaps highlighted by the GIA. All the internal audit activities and processes were performed as guided by the Internal Audit Charter and the GIA Standard Operating Procedure. A summary of the Internal Audit activities performed during the financial year under review are as following:- a. completed 4 risk-based audit engagements and presented those reports to AC, of which focused on review of various scope including operations, support functions and business entities of the Group to ascertain the adequacy and effectiveness of risk, control and governance processes; b. performed follow-up review for findings with high impact to assess the adequacy, effectiveness and timeliness of actions taken by the line management; c. tabled the Annual Audit Plan and budget for FY 2021 to AC for review and approval; and d. presented the Internal Audit Charter to AC for annual review and approval. The total costs incurred in FY 2020 for GIA amounted to RM732,157 (2019: RM526,709). AUDIT COMMITTEE