51 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 SUMMARY OF ACTIVITIES DURING FINANCIAL YEAR ENDED 31 DECEMBER 2021 (Cont’d) Internal Audit: (Cont’d) c. Reviewed the annual internal audit plan to ensure adequacy of scope and coverage to ensure that high risk areas were audited on a regular basis d. Reviewed the status of internal audit plan during each meeting e. Discussed the major internal audit findings, weaknesses, and significant internal audit matters raised by the GIA. The ARC also sought the Management’s commitment for corrective actions as recommended in internal audit reports f. Reviewed the status of audit findings in ensuring appropriate actions are implemented in a timely manner by the Management, with no audit issues left unaddressed Recurrent Related Party Transaction: Recurrent related party transactions undertaken by the Group are reviewed annually for compliance with the MMLR and the appropriateness of such transactions to avoid any potential or actual conflict of interest and to ensure decisions are based on the Group’s normal commercial terms, and that adequate internal procedures had been followed to protect the interest of the Company and its shareholders. Other Activities: a. Reviewed the Statement on Risk Management and Internal Control, Corporate Governance Overview Statement, and Audit and Risk Committee Report prior to the Board’s approval for inclusion in the Annual Report b. Reviewed the Corporate Governance Report prior to the Board’s approval for submission to Bursa Malaysia c. Conducted a self-assessment to evaluate the Committee’s overall effectiveness in discharging its responsibilities d. Verified the allocation of Employer Share Scheme (“ESS”) to executives, pursuant to the ESS By-Law 5.2 INTERNAL AUDIT FUNCTION The Group has established an internal audit function as a key component of its internal control appraisal process. The Head of GIA reports independently to the ARC and is guided by a formalised Internal Audit Charter and The Institute of Internal Auditor’s International Professional Practice Framework. The main responsibility of the GIA function is to undertake independent assessments on the adequacy and effectiveness of internal controls pertaining to key areas as follows: a. Reliability and integrity of financial and operational information b. Effectiveness and efficiency of operations c. Safeguarding of assets d. Compliance with applicable laws and regulations The GIA does not have any direct operational responsibility or authority over any of the activities it audited and neither had they engaged in any activity that might impair the internal auditor’s judgement. All internal audit staff declare annually that they are free from any relationships or conflict of interest. AUDIT AND RISK COMMITTEE REPORT CONT’D
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