50 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 SUMMARY OF ACTIVITIES DURING FINANCIAL YEAR ENDED 31 DECEMBER 2021 (Cont’d) External Audit: a. Reviewed the suitability, performance, and the independence of the External Auditors’ in fulfilling their responsibilities as set out in the By-Laws (On Professional Ethics, Conduct and Practice) for Professional Accountants as adopted by Malaysian Institute of Accountant and the Group Policy Statement on Auditor Independence by covering the caliber of the external audit firm; Additionally evaluated the quality of processes and performance , audit skills, industrial knowledge as well as objectivity and their communications with ARC b. Reviewed and discussed the External Auditors’ audit planning memorandum covering the scope, plan, key areas and proposed fees for the statutory audit and other non-audit services based on the External Auditors’ presentation of audit strategy and plan to ensure that their scope of work adequately cover the activities of the Group c. Reviewed and discussed with the External Auditors the results, reports, and financial statements of the Group d. Reviewed and discussed with the External Auditors the issues highlighted in the management letter as well as the response from the Management and ensured, necessary corrective actions had been taken by the Management. The ARC also considered the External Auditors’ suggestions on improving the accounting procedures and internal control measures e. Reviewed and discussed the non-audit fees for services rendered by External Auditors to ensure they are in line with the Group Policy Statement on Auditor Independence. During FY2021, non-audit services rendered by the External Auditors for the Group amounted to RM 30,118 (2020: RM11,306) for the review of Statement of Risk Management and Internal Control and tax services rendered. f. Reviewed the performance of the External Auditor by conducting an evaluation encompassing technical competencies; partners/directors accessibility and time commitment; independence and objectivity; audit scope and planning; audit communications; and recommended to the Board on the re-appointment of BDO PLT as External Auditors. Risk Management and Internal Control: a. Reviewed the minutes of meeting and the progress of Risk Management Committee (“RMC”) in its on-going identification and monitoring of key risks and the controls and processes implemented in managing these risks b. Reviewed the key risks as reported by the RMC related to the business and operations c. Reviewed the action plans by RMC to ensure significant internal controls are promptly and timely implemented to mitigate the key risks identified d. Together with the Group CEO, Group CFO, and Group CRO reviewed of the results of work performed by Internal Auditors, External Auditors, and the RMC and evaluated the overall adequacy and effectiveness of the system of internal controls during the financial year. e. Monitored the Whistle Blowing programme as part of the risk management structure and good corporate governance practice f. Received updates from the Management on matters relating to the impact of COVID-19 pandemic on the Group’s business and noted that the Group has relevant internal controls and various mechanisms in place to manage the impact of the pandemic in order to ensure continuity of business operations. Internal Audit: a. Reviewed and assessed the adequacy of resources and reporting structure of Group Internal Audit (“GIA”) to ensure the audit plan is executed effectively and independently b. Reviewed the competency of GIA to ensure GIA are provided with adequate trainings and guidance to possess the required skill sets and knowledge AUDIT AND RISK COMMITTEE REPORT CONT’D
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