• Reviewed and discussed with the external auditors, BDO PLT, on their audit plan for the FYE 31 August 2023 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 2023 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 2023 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”). While the risk ratings remained consistent, the total number of risk factors has increased after incorporating the additional risk in managing the environment, social and governance (“ESG”) strategies and challenges. 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 2023 is as follows: • Prepared and presented an internal audit plan for the FYE 31 August 2023 to the Audit Committee. The focus of the internal audit plan for the FYE 31 August 2023, 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 2023, covering the following companies and functional areas/sections: i. Sasbadi Sdn Bhd, Sasbadi Online Sdn Bhd, Orbit Buku Sdn Bhd and Malaysian Book Promotions Sdn Bhd – Sales and Marketing ii. United Publishing House (M) Sdn Bhd – Finance and Accounts – Sales and Marketing • 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 2023 were RM30,000. ANNUAL REPORT 2023 SASBADI HOLDINGS BERHAD 64 Audit Committee Report (continued)
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