EXCEL FORCE MSC BERHAD Annual Report 2017

33 EXCEL FORCE MSC BERHAD (570777-X) ANNUAL REPORT 2017 THE AUDIT COMMITTEE IS GOVERNED BY THE FOLLOWING TERMS OF REFERENCE: (cont’d) 3. Key Functions and Responsibilities (cont’d) j) To verify the allocation of options pursuant to a share scheme for employees at the end of each financial year, if any; and k) To review the adequacy of the Risk Management framework, policy, process and procedures undertaken and whether or not appropriate Risk Management Control actions are taken on to safeguard the interest of the respective stakeholders. 4. Summary of work of the Audit Committee During the financial year, the Audit Committee has carried out the work as set out in the terms of reference detailed below: - a) Reviewed the scope of work of the external auditors and audit plans for the year; b) Reviewed with the external auditors the results of the audit, the audit report and the management letter, including management’s response; c) reviewed the nomination of the proposed change in auditors; d) Reviewed the internal auditors’ scope of work; e) Checked with the internal auditors on any findings which require the Committee’s attention; f) Reviewed the internal control policy and internal control system; g) Reviewed the quarterly unaudited financial results announcements before recommending them for the Board’s approval; and h) Reviewed the annual financial statements before recommending for approval by the Board. INTERNAL AUDIT FUNCTIONS The Company has outsourced its internal audit division to an independent professional consulting firm to assist the Audit Committee in discharging their responsibilities and duties. The role of the internal audit functions is to undertake independent regular and systematic reviews of the system of internal controls to provide reasonable assurance that such system continues to operate satisfactory and effectively. The internal audits cover the review of the adequacy of risk management, operational controls, and compliance with established procedures, guidelines and statutory requirements. The details of internal audit functions are noted in the Statement on Risk Management and Internal Control in this Annual Report. During the financial year under review, the internal auditors reviewed and audited the following areas: - (a) Review and update of Sales & Marketing Standard Operating Procedures; (b Internal control environment of Project Management; (c) Internal control environment of Customer Service; (d) Review of the Risk Register, Risk Matrix and Risk Management framework. The fee (inclusive of goods and services tax) paid to the professional firm in respect of internal audit function for the financial year ended 31 December 2017 was RM31,160. Audit Committee Report (cont’d)