ENRA Group Berhad Annual Report 2021

CORPORATE GOVERNANCE ENRA Group Berhad | Annual Report 2021 70 Audit and Risk Management Committee Report SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR During the financial year, the key activities undertaken by the ARMC are set out below: Financial Reporting a) Reviewed the quarterly financial results of the Company and the Group and the accompanying announcements before recommending for Board’s approval. b) Reviewed the audited financial statements of ENRA prior to submission to the Board for approval. The External Auditors was of the opinion that the Company’s audited financial statements reflected a true and fair view of the financial position of the Company and its group in accordance with the Malaysian Financial Reporting Standards and the requirements of the Companies Act 2016. External Audit a) Reviewed the external auditors’ scope of work and audit plans for the financial year to ensure sufficient coverage in terms of scope. Prior to the audit, representatives from the external auditors presented their audit strategy and plan. The ARMC also met with the external auditors twice on 17 June 2020 and 22 February 2021 without the presence of the Executive Directors and Management. The External Auditors were given the opportunity to raise any matters of concern arising from their audit work. No major concerns were highlighted and the External Auditors had also confirmed that they had received full cooperation fromManagement and unrestricted access to the Group’s records. b) Reviewed with the external auditors the results of the audit, the audit report and the management letter, including Management’s responses to the audit findings. c) Considered the audit fees payable to the external auditors against the size and complexity of the Group before recommending for Board’s approval. d) Reviewed the independence, objectivity and suitability of the external auditors and services provided, including non- audit services. Details on the non-audit fees incurred for services rendered by the external auditors and its affiliates for the financial year ended 31 March 2021 are disclosed in the Additional Compliance Statement on page 79. e) Recommended to the Board for the re-appointment of the external auditors to be proposed for shareholders’ approval at the Annual General Meeting. Internal Audit a) Approved the Internal Audit Plan for financial year ending 31 March 2022. The Audit Plan was developed using a risk-based audit methodology where entities and processes were selected for audit based on risk assessments carried out periodically by the Internal Auditors. b) Reviewed the adequacy of the Internal Audit Department’s resource requirements, programmes and the annual assessment of the Internal Audit Department’s competency, performance and staff composition. The ARMC had also met with the Head of Internal Audit without the presence of the Executive Directors and Management to ensure there were no restrictions on the scope of IA’s audit. The Head of Internal Audit were given the opportunity to raise any matters of concern arising from their IA’s work. c) Reviewed and deliberated the internal audit reports that highlighted audit issues, major findings, audit recommendations and Management’s responses. The ARMC also reviewed the status of implementation of corrective actions taken by Management to ensure appropriate remedial actions were taken on a timely basis to address all areas of risk and internal control issues. Risk Management a) Recommended to the Board, improvements in internal control procedures and risk management. The Chairman of the Executive Risk Management Committee (“ERMC”) updated the ARMC quarterly on the risk profiles and risk management of the Group. b) Reviewed the effectiveness of the risk management system and the risk assessment reports from the ERMC. Significant risk issues were summarized and communicated to the Board for consolidation and resolution.