Wah Seong Corporation Berhad Annual Report 2019

42 WAH SEONG CORPORATION BERHAD g. The AC reviewed the Company’s new Constitution at the AC Meeting held on 3 April, 2019 and the same was recommended to the Board of Directors for their review and approval for tabling at the AGM of the Company held on 15 May 2019. 4. INTERNAL AUDIT FUNCTION The Audit Committee (“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 2019 (“FY 2019”). 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 9 risk-based audit engagements and presented those reports to AC, of which focused on review of various scope including operations, support functions, project 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 determine the adequacy, effectiveness and timeliness of actions taken by the line management; c. tabled the Annual Audit Plan and budget for FY 2020 to AC for review and approval; and d. presented the revised Internal Audit Charter to AC for review and approval. The total costs incurred in FY 2019 for GIA amounted to RM526,709 (2018: RM710,850). Audit COMMITTEE