EXCEL FORCE MSC BERHAD Annual Report 2018

33 EXCEL FORCE MSC BERHAD (570777-X) ANNUAL REPORT 2018 The principal objective of the Audit Committee is to assist the Board to discharge its statutory duties and responsibilities in relation to financial, accounting and reporting responsibilities and to ensure proper disclosure to the shareholders of the Company. The Audit Committee will ensure that the Management establishes and maintains an effective internal control system including adequacy of resources, qualifications and experience of staff fulfilling the accounting and financial reporting function of the Company. The Board is pleased to present the Audit Committee Report for the financial year ended 31 December 2018. COMPOSITION AND MEETINGS The Audit Committee held four (4) meetings during the year. The members of the Audit Committee and details of their attendance of the meetings during the financial year ended 31 December 2018 are as follows: Name of Director Designation / Directorship Number of meetings attended Aaron Sim Kwee Lein Chairman of Committee /Independent Non-Executive Director 4/4 Ng Kim Huat Member of Committee / Independent Non-Executive Director 4/4 Lok Choon Hong Member of Committee / Independent Non-Executive Director 4/4 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 responses; 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. The terms of reference of the Audit Committee is available at the Company’s website at www.excelforce.com.my. 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 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. In developing the scope of the internal audit function, the Audit Committee has satisfied that: (a) the person responsible for internal audit has relevant experience, sufficient standing and authority to enable him to discharge his functions effectively; (b) internal audit has sufficient resources and is able to access information to enable it to carry out its role effectively; and (c) the personnel assigned to undertake internal audit have the necessary competency, experience and resources to carry out the function effectively. Audit Committee Report