MKH Annual Report 2019

064 A N N U A L R E P O R T 2 0 1 9 AUDIT COMMITTEE REPORT Summary of Work of the Audit Committee During the financial year ended 30 September 2019 (“FY 2019”), the Audit Committee had worked closely with the external auditors, in-house internal audit team and management to carry out its functions and duties in line with the terms of reference. The summary of the work of the Audit Committee in discharging its duties during the financial year under review includes the following:- (a) Financial Reporting • Reviewed all the four (4) quarter’s unaudited financial results and audited financial statements of the Company and the Group for the FY 2019 together with the external auditors prior to recommending the same for approval by the Board. • Reviewed the impacts of any changes in accounting policies and adoption of new accounting standards together with significant matters highlighted in the financial statements. • Confirmed with management and external auditors that the Company’s and Group’s annual audited financial statements have been prepared in compliance with applicable approved accounting and financial reporting standards. (b) Internal Audit • Reviewed and approved the scope of annual audit plan for the FY 2019 proposed by the in-house internal audit team to ensure the adequacy of the scope and coverage of work on the Group’s activities. • Reviewed the internal audit reports, which highlighted the audit issues, recommendations and management’s responses. Discussed with management on actions taken to improve the system of internal control based on improvement opportunities identified in the internal audit reports. • Reviewed and approved the follow-up reports on the status of implementation of those control weaknesses as highlighted by in-house internal audit team. • Reported to the Board on significant audit issues and concerns discussed during the Audit Committee meetings which may have significant impact on the Group from time to time, for consideration and deliberation by the Board. (c) External Audit • Reviewed and approved the external auditors annual audit planning memorandum of the Group for the FY 2019, external auditor’s fees, audit strategy and scope of work for the year in connection with their audit. • Reviewed the findings of the external auditors reports particularly on key audit matter and areas of concern highlighted in the progress report, including management’s response to the concerns raised by the external auditors.