• Reviewed and discussed with the external auditors, BDO PLT, on their audit plan for the FYE 31 August 2022 covering the audit scope, audit methodology, timetable and milestones, audit materiality, audit focus areas and reported observations in prior year’s audit, before endorsing and recommending to the Board for adoption; and • Reviewed the audit and non-audit fees of the external auditors for the FYE 31 August 2022 before recommending for the Board’s approval. Internal audit • Reviewed, discussed and approved the outsourced internal auditors’ audit plan (covering the scope of work, subsidiaries being audited, estimated number of man-days, audit schedule and reporting timeline) and fees for the FYE 31 August 2022 before recommending for the Board’s endorsement; and • Reviewed and deliberated on the outsourced internal auditors’ reports as detailed in the Internal Audit Function section below, and follow up on the actions taken by the Management in addressing the issues and recommendations raised by the internal auditors. Risk management • Reviewed the updated Registry of Risks and Risk Matrix prepared by the Risk Management Team (“RMT”), whereby the total number of risk factors and ratings remained. The Audit Committee also take note of the changes in the suggested risk control action. INTERNAL AUDIT FUNCTION The internal audit function of the Group is outsourced to Sterling Business Alignment Consulting Sdn Bhd, an external professional firm which is independent of the activities and operations of the Group. They carried out review on the adequacy of the internal control system of the Group. The outsourced internal auditors report directly to the Audit Committee. A summary of the work carried out by the outsourced internal auditors during the FYE 31 August 2022 is as follows: • Prepared and presented an internal audit plan for the FYE 31 August 2022 to the Audit Committee. The focus of the internal audit plan for the FYE 31 August 2022, as approved by the Audit Committee was on major subsidiaries of the Company; • Undertook the internal control assessment in accordance with the internal audit plan for the FYE 31 August 2022, covering the following companies and functional areas/sections: • Sasbadi Sdn Bhd, Sasbadi Online Sdn Bhd, Sasbadi Learning Solutions Sdn Bhd, United Publishing House (M) Sdn Bhd, The Malaya Press Sdn Bhd and Mindtech Education Sdn Bhd – Human Resources Management – Procurement • Sasbadi Sdn Bhd in the managing of Linguaskill by Cambridge Assessment English unit – Sales and Marketing – Finance and Accounts • Undertook follow-up review on previously reported audit findings to ensure weaknesses identified have been or are being addressed; and • Presented the reports on internal control assessment setting out their findings and recommendations and Management’s responses and actions, to the Audit Committee for deliberation. The fees incurred by the Group in relation to outsourced internal audit function for the FYE 31 August 2022 were RM30,000. AUDIT COMMITTEE REPORT (continued) 52 SASBADI HOLDINGS BERHAD
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