32 EXCEL FORCE MSC BERHAD PRINCIPLE B- EFFECTIVE AUDIT AND RISK MANAGEMENT I. Audit Committee 9.0 There is an effective and independent audit committee. The Board is able to objectively review the audit committee's findings and recommendations. The Company's and the Group’s financial statements is a reliable source of information. 9.1 The Audit Committee's ("AC") principal duties include the supervision of the truthfulness and reliability of the Company's financial statements, the effectiveness and adequacy of the Company's internal control as well as risk management system. The AC comprises exclusively Independent Non-Executive Directors and to ensure the Board is able to review the AC's finding and recommendation independently, the chairman of AC is not the chairman of the Board. The appointment of the auditors is subject to approval at the general meeting. In making its recommendations to the shareholders on the appointment and re-appointment of auditors, the Board relies on the review and recommendation of the AC. The Board has established a formal and transparent arrangement with its external auditors to meet their professional requirements. The AC meets with the external auditors to review the rationale of significant judgement, accounting principles and the operating effectiveness of internal controls and business risk management. The auditors have continued to highlight to the AC and the Board matters that require the Board's attention. 9.2 The Board is responsible to prepare financial statements which reflect a true and fair view of the financial position of the Group and of the Company and the financial results of the Group and of the Company for each financial year. The financial statements are prepared in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. In preparing the financial statements, the Board is required to:- • Adopt suitable accounting policies consistently; • Make judgments and estimates that are prudent and reasonable; • Comply with applicable accounting standards; • Prepare financial statements on a going concern basis unless otherwise stated; and • Ensure proper keeping of accounting records with reasonable accuracy. The Board is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Group and of the Company and to ensure that the financial statements comply with the Companies Act. The Board is satisfied that in preparing the financial statements of the Group and of the Company for the financial year ended 31 December 2021, the Group and the Company have used appropriate accounting policies and applied them consistently and prudently. The Board is of the opinion that the financial statements are prepared in accordance with all relevant approved accounting standards and have been prepared on a going concern basis. 9.3 The Group practices the cooling offperiod to safeguard the independence of the audit by avoiding potential threat whichmay arise when a former key audit partner is in a position to exert significant influence over the audit and preparation of the Group’s and of the Company’s financial statements. Corporate Governance Overview Statement (cont’d)
RkJQdWJsaXNoZXIy NDgzMzc=