SCC Holdings Berhad Annual Report 2019

22 SCC Holdings Berhad | Annual Report 2019 INTERNAL AUDIT FUNCTION The Company engaged Messrs. CGRM Infocomm Sdn Bhd (“CGRM”) as outsources Internal Auditors to carry put the internal audit function of the Company and its subsidiaries (“Group”) for the financial year ended 31 December 2019. The internal auditor reports directly to the AC on a half-yearly basis by presenting its Internal Audit Reports during the AC meetings, whereby relevant issues identified in the Internal Audit Reports will be discussed with the Management in the meeting. Rectification work, if necessary will be performed and follow-up will be carried out by internal auditor for the purpose of reporting at the subsequent AC meeting. On 28 May 2019, CGRM tabled a report for AC’s review covering the Internal Audit of FSED (Sales Processing and Billing Management, and Collection Management) and follow up on Internal Audit Report Issued in September 2018 for AHPD on Sales Processing Management, Logistic Management, Collections Management. On 21 November 2019, CGRM tabled a report for AC’s review in respect of the Spare Parts Management, and Warranty Management of the Technical Service Division (“TSD”); and follow-up on Internal Audit Report Issued in May 2019 on FSED (Sales Processing and Billing Management, and Collection Management). The reports outlined the audit objective, scope of work, timeline, summary of tests and results, summary of effective controls, summary list of finding, detail findings together with the Internal Auditors’ recommendations and the Management’s responses. The cost incurred for the outsourced independent internal audit services in respect of the financial year ended 31 December 2019 was RM31,800.00 (FYE 2018 – RM31,485.00). audit committee report (cont’d)