MSM Malaysia Holdings Berhad Annual Report 2019

AUDIT COMMITTEE REPORT (b) Recent developments in laws and regulations which cover the following: i) Development in Accounting Standards ii) Recent Tax Developments iii) MIA Competency Framework for Finance function in Public Interest Entities • The AC also noted the declaration of independence by PwC. • Analysed the external audit fees proposed in respect of the scope of work required for the financial year and recommended the same for approval by the Board. • Held four meetings with PwC in February, May, August and November 2019 to review the financial results and areas of concerns identified. • Reviewed the assessment of the external auditor for FY 2018 for reappointment based on input from management and recommended the same for approval by the Board. Related PartyTransactions • Analysed the quarterly report on Recurrent Related Party Transactions for monitoring the transactions against the shareholders’ mandate. • Reviewed the Circular to the shareholders to seek mandate on the existing Recurrent Related Party Transactions of the Group and recommended the same for approval of the Board. • Periodically reviewed the Recurrent Related Party Transactions that were mandated at the 8 th AGM held on 19 June 2019 and tracked the transaction against the mandated amount. • Reviewed the internal audit report on Recurrent Related Party Transactions. Governance • The AC Chairman updated the Board on significant matters deliberated at AC meeting. The report by the Chairman of AC to the Board was made standing agenda item at the quarterly meetings of the Board. • Reviewed the following reports and recommended them for the Board’s approval for inclusion in the Annual Report for the FY 2018: i) Corporate Governance Overview Statement and Corporate Governance Report ii) AC Report iii) Statement of Risk Management and Internal Control iv) Sustainability Reporting on Economic, Environmental and Social The AC reviewed the reports with focus on meeting the MMLR and reporting best practises based on the guidance from the MCCG 2017, Guidance to Directors of Public Listed Companies on the Statement of Risk Management and Internal Control and other best practise references. • Reviewed and approved the schedule of AC Meetings for year 2020. EXTERNAL AUDITOR POLICY The External Auditor Policy (Policy) was developed to provide guidance on matters related to dealing with the External Auditor for the statutory audit of MSM Group. This Policy was approved by the Board on 23 February 2016. The Policy covers appointment and reappointment of external auditors, assessment of external auditors’ performance and independence, audit partner rotation, audit delivery and reporting, engagement of external auditor for non-audit services and removal of external auditor. During the FY 2019, there was no non-audit fees services rendered by the external auditor. CONTINUOUS LEARNING AND DEVELOPMENT The AC members are updated regularly on changes of accounting standards and issues related to financial reporting through quarterly meetings. The members of the AC had attended various seminars, training programme and conferences to keep abreast with changes in the industry and business environment. MSM Malaysia Holdings Berhad | Annual Report 2019 86