B. EFFECTIVE AUDIT AND RISK MANAGEMENT Financial Reporting The Board aims to present a balanced, clear and meaningful assessment of the Group’s financial performance and position, and prospects in presenting the annual financial statements and quarterly reports as well as announcements to Bursa Securities. The Board is assisted by the ARMC in reviewing the Group’s financial reporting processes and accuracy of its financial results, and scrutinising information for disclosure to ensure compliance with applicable approved accounting standards in Malaysia and the provisions of the CA 2016. Internal Control The Board acknowledges its overall responsibility for maintaining a sound system of internal controls to safeguard shareholders’ investment and the Group’s assets. However, the Board recognises that such system is structured to manage rather than eliminate the possibility of encountering risk of failure to achieve corporate objectives. The Statement on Risk Management and Internal Control is set out on pages 58 to 63 of the Annual Report 2022 providing an overview of the state of internal controls, risk management framework and internal audit function within the Group. Relationship with Auditors The Company has established a formal, transparent and appropriate relationship with the Company’s auditors, both internal and external. The internal auditors and the external auditors have direct access to the ARMC at all times. From time to time, the auditors will highlight to the ARMC and the Board matters that require the Board’s attention. The ARMC meets with the external auditors at least twice a year without the presence of Executive Directors and Management to discuss their audit plan and audit findings. The ARMC reviews with the external auditors the annual audited financial statements before recommending them to the Board for its approval. The ARMC assesses the effectiveness of both internal and external audit as well as the suitability, independence and objectivity of the external auditors. In its assessment, the ARMC considered several factors, which included adequacy of experience and resources of the firm and the professional staff assigned to the audit as well as the effectiveness of the audit process. Written assurance shall be obtained from the external auditors yearly, confirming their independence in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants. Being satisfied with the external auditors, Crowe Malaysia PLT’s (“Crowe”) technical competency and audit independence, the ARMC recommended the appointment of Crowe as external auditors for FY2022. The Board at its meeting held on 30 March 2023 approved the ARMC’s recommendation for the shareholders’ approval to be sought at the Fourteenth AGM on the appointment of Crowe as external auditors of the Company for FY2023. C. APPROACH TO SUSTAINABILITY The Board is responsible for the governance of sustainability in the Group including setting the Group’s sustainability strategies, priorities and targets. The Board also ensures the adequacy of the Group’s framework for risk management and internal controls which are crucial to the Group’s sustainability. The Group’s sustainability framework is disclosed in page 29 of the Annual Report 2022. The Board takes into account sustainability considerations when exercising its duties including among others the development and implementation of company strategies, business plans, major plans of action and risk management. Assessing the issues that are most material to us and our stakeholders in the environmental, social and governance contexts will enable us to continue to operate effectively and sustainably. The Group’s sustainability measures, framework for risk management, material sustainability matters (“MSM”), and controls measures are disclosed in pages 31 to 33 of the Annual Report 2022. CORPORATE GOVERNANCE OVERVIEW STATEMENT Annual Report 2022 48
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