Yinson Annual Report 2020

165 Annual Report 2020 PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT Part I – Audit Committee Intended Outcome 8.0 There is an effective and independent audit committee. The board is able to objectively review the audit committee’s findings and recommendations. The company’s financial statement is a reliable source of information. The full detailed report on the AC’s composition, summary of terms of reference and summary of work performed during the financial year under review is contained on pages 175 to 177 of the Annual Report 2020. The terms of reference of the AC requires a former key audit partner to observe a cooling-off period of at least two (2) years before being appointed as an AC member. Currently, no AC members are former key audit partners of the Company. The AC is responsible for reviewing, assessing and monitoring the performance, suitability and independence of external auditors annually in accordance with the requirements set out in the External Auditor Policy and Procedure, to ensure continued independence and objectivity of the external auditors. During the financial year under review, the AC conducted two (2) private sessions in March and December 2019 with external auditors, PwC without the presence of Executive Directors and Management. The AC has obtained assurance from the external auditor confirming its independence. The Board has, on 28 April 2020, recommended the re- appointment of PwC for Shareholders’ approval at the forthcoming 27 th AGM. Part II – Risk Management and Internal Control Framework Intended Outcome 9.0 Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives. The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed. The Company has, in November 2017, streamlined its ERM framework and risk identification process to be in line with the IS0 31000 Risk Management guidelines. A detailed report of the risk management and internal control framework is as per the Statement on Risk Management and Internal Control found on pages 169 to 174 of the Annual Report 2020. The Board is of the view that the system of internal control and risk management is sound and adequate to mitigate risk exposure of the business and safeguard the interest of the Shareholders, employees, regulators and other stakeholders. Intended Outcome 10.0 Companies have an effective governance, risk management and internal control framework and stakeholders are able to assess the effectiveness of such a framework. The IA function of the Group is carried out through a co-sourcing engagement by both the in-house IA Department and EY, who report directly to the AC. The scope of work for the IA function is as set out in the Report on AC as found on page 177 to 178 of the Annual Report 2020.