ACTIVITIES DURING THE FINANCIAL YEAR During the financial year ended 31 December 2021, the activities carried out by the ARMC in the discharge of its duties included, amongst others, the following: - (i) Financial Reporting • Reviewed the unaudited quarterly financial results and annual audited financial statements before recommending to the Board for consideration and approval for subsequent release to Bursa Securities. • Reviewed major audit findings affecting the Group and responses with the Management, External Auditors and Internal Auditors. • Assessed the key accounting and disclosure implications arising from the Covid-19 pandemic. (ii) External Audit • Reviewed the External Auditors’ audit plan for the financial statement of the Company covering the audit approach, scope of work and area of significant audit attentions, audit reporting timeline and deliverables. • Reviewed the audit completion report covering the areas of audit emphasis, key audit matters identified by the External Auditors for inclusion in the Auditors’ report that requires the exercise of significant judgement by Management, updates on financial reporting and Malaysian Financial Reporting Standards (“MFRS”) applicable to the Group and the relevant impact on application of the MFRS. • Reviewed if any, the difference between the consolidated profit after tax as per the audited results of the Company and the unaudited results announced to Bursa Securities to ensure no variation of more than 10% that warrants immediate disclosure to Bursa Securities. • Confirmed with the External Auditors that the ARMC has no knowledge of any fraud related matters affecting the Group, actual or potential instances of litigations and claims, ongoing or pending, for or against the Group and breach or non-compliance with laws and regulations. • Reviewed the extent of assistance provided by Management to the External Auditors without the presence of Management and Executive Directors and discussed significant issues affecting the Group arising from the audit with the External Auditors. • Reviewed the assessment report on the suitability and independence of the External Auditors including nonaudit services provided by the External Auditors to the Company and corresponding fees and proposed to the Board the re-appointment of the External Auditors. The assessment criteria encompassed audit planning and design, audit execution, audit fees and independence of the External Auditors. (iii) Internal Audit • Reviewed staffing requirement of the in-house Internal Audit Department to ensure it is adequately staffed by employees with relevant skills, knowledge and experience to enable the department to perform its role. • Reviewed the adequacy and relevance of the scope, compliance and risk-based internal audit plan and results of the internal audit procedures with the in-house Internal Audit Department for the Manufacturing Division and the outsourced Internal Auditors for the Corporate, Property Development & Construction and Agriculture Divisions. The focus of review was placed on identified high risk and critical areas that the Group faces. • Reviewed the Internal Audit Reports and relevant issues observed as well as recommendations to remedy identified weaknesses and management responses therefrom. • Reviewed the extent of assistance provided by Management and issues arising from and weaknesses identified during the audits with the Internal Auditors without the presence of Management and Executive Directors. Report of The Audit and Risk Management Committee 57 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 (cont’d)
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