Yinson Annual Report 2019

• Monthly Management Accounts The Finance Department monitors the activities and performance of the subsidiaries through the monthly management accounts and ensures accounting and disclosure practices comply to the Group’s requirements and relevant accounting standard. • Operations Review and Monitoring Operations review of the Group are constantly monitored by the Board and Audit Committee with up-to-date reports provided by the MC. The MC meets periodically to assess, evaluate and discuss the daily operations and performance of the Group, including tabling issues within the business for deliberations. Regular Management meetings are held between the respective members of the MC and the mid-level Management team to assess the performance of respective business units. • Recurrent Related Party Transactions All recurrent related party transactions (“RRPTs”) are dealt with in accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Listing Requirements”) and a summary of RRPT Register is tabled for Audit Committee’s review and monitoring on a quarterly basis. Board’s Commentary on the System of Risk Management and Internal Control The Board has received assurance from the Group Chief Executive Officer and Group Financial Controller that the Group’s risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control systems of the Group. The Board is of the view that the risk management and internal control systems in place for the financial year under review and up to the date of approval of this statement for inclusion in the Annual Report is adequate and effective to safeguard shareholder investment, the interest of customers, employees and other stakeholders, and the Group’s assets. Internal Audit Function The Group has an independent internal audit department in place, which provides the Board, through the Audit Committee, the state of adequacy and effectiveness of the Group’s system of internal control and management information system. An external service provider was appointed to co-source internal audit engagements in order to attain additional business insights and gain access to competencies to better match the Group’s expanding operations. The internal audit function adopts a risk-based approach in executing the internal audit plan that focuses on various business units and functions within the Group. According to the internal audit plan reviewed and approved by the Audit Committee, the internal audit function reports directly to the Audit Committee on the outcome of its appraisal of the risk management and internal control activities. The internal audit reports were submitted and presented to the Audit Committee for review. The internal audit function also follows-up on the status of Management’s action plans. The Board is not aware and has not been made aware of any material weaknesses or lapses in the internal control system of the Group occurring within the financial year under review. The Board continues to take measures to strengthen the Group’s risk management and internal control system. Review of the Statement by External Auditors As required by paragraph 15.23 of the Listing Requirements, the external auditors have reviewed this Statement on Risk Management and Internal Control pursuant to the scope set out in the Recommended Practice Guide (“RPG”) 5 (Revised): Guidance for Auditors on Engagement to Report on the Statement on Risk Management and Internal Control included in the Annual Report, issued by the Malaysian Institute of Accountants. RPG 5 does not require the external auditors to consider whether the Statement on Risk Management and Internal Control covers all risks and controls or to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Group. This Statement on Risk Management and Internal Control was made in accordance with a resolution of the Board on 6 May 2019. 95 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting