Yinson Annual Report 2020

176 Yinson Holdings Berhad SECTION 6 GOVERNANCE & LEADERSHIP SUMMARY OF WORK PERFORMED During the financial year under review, the AC carried out its duties in accordance with its terms of reference and the activities are summarised as follows: a) Risk Management and Internal Control • Reviewed the adequacy and effectiveness of the Group’s risk management, internal control system and management information system; • Reviewed the extent of compliance with established internal policies, standards, plans, procedures, laws and regulations; • Recommended to the Board steps to improve the system of internal control derived from the findings of the internal and external auditors; and • Discussed and reviewed risk profile. b) Financial Reporting • Reviewed the unaudited quarterly financial results of the Group, prior to its release to Bursa Securities; • Reviewed the annual audited financial statements of the Group together with external auditors’ report, management letter and management’s response; and • Reviewed the application of major accounting policies and practices to ensure that the Group’s financial statements had been prepared in compliance with approved accounting standards and that the Company adhered to all legal and regulatory requirements. c) Internal Audit • Reviewed and approved the proposed revisions to the Internal Audit Charter; • Re-appointed Ernst & Young Advisory Services Sdn Bhd (“EY”) to co-source with the in-house internal audit department for the internal audit function; • Reviewed and approved the internal audit plan; • Reviewed and approved the Group Internal Audit’s staffing requirements and budget to ensure adequacy of resources and competencies of the department; • Discussed with the internal auditors on its scope of work, functions, adequacy and competency of resources and co-ordination with external auditors; • Conducted two (2) private sessions with internal auditors in March and December 2019 respectively, without the presence of Executive Directors and/or Management; • Reviewed the reports prepared by the internal auditors on the state of internal control of the Group; • Monitored the outcome of the audits and follow-up audits conducted to ascertain all action plans were adequately implemented to address the key risks; and • Assessed the performance of the internal audit function and reviewed its effectiveness in the audit process. d) External Audit • Discussed with the external auditors the annual audit plan, nature and scope of audit as well as audit procedures, prior to the commencement of audit; • Conducted two (2) private sessions with external auditors in March, and December 2019 respectively, without the presence of Executive Directors and/or Management; • Reviewed the external auditors’ audit findings for the financial year under review; • Reviewed with the external auditors the Statement on Risk Management and Internal Control of the Group for inclusion in the Annual Report; and • Reviewed the overall performance of the external auditors, including assessment of their independence, technical competency, resources and reasonableness of their audit fees and non-audit fees. Report on Audit Committee