ENRA Group Berhad Annual Report 2018

35 A N N U A L R E P O R T 2 0 1 8 AUDIT AND RISK MANAGEMENT COMMITTEE REPORT cont’d SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR During the financial year, the key activities undertaken by the ARMC are set out below: Financial Reporting a) Reviewed the quarterly financial results of the Company and the Group and the accompanying announcements and press releases before recommending for Board’s approval. b) Reviewed the audited financial statements of ENRA prior to submission to the Board for approval. The review was to ensure that the audited financial statements were drawn up in accordance with the applicable approved accounting standards and the provisions of the Companies Act 2016. External Audit a) Reviewed the external auditors’ scope of work and audit plans for the financial year to ensure sufficient coverage in terms of scope. Prior to the audit, representatives from the external auditors presented their audit strategy and plan. The ARMC also met with the external auditors twice in June 2017 and February 2018 without the presence of the Executive Directors and Management to discuss any matters the external auditors may wish to present. b) Reviewed with the external auditors the results of the audit, the audit report and the management letter, including Management’s responses to the audit findings. c) Considered the audit fees payable to the external auditors against the size and complexity of the Group before recommending for Board’s approval. d) Reviewed the independence, objectivity and suitability of the external auditors and services provided, including non-audit services. Details on the non-audit fees incurred for services rendered by the external auditors and its affiliates for the financial year ended 31 March 2018 are disclosed in the Additional Compliance Statement on page 43 of this Annual Report. e) Recommended to the Board for the re-appointment of the external auditors to be proposed for shareholders’ approval at the Annual General Meeting. Internal Audit a) Approved the Internal Audit Plan for financial year ending 31 March 2019. b) Reviewed the adequacy of the Internal Audit Department’s resource requirements, programmes and conducted the annual assessment of the Internal Audit Department’s competency, performance and staff composition. The ARMC had also met with the Head of Internal Audit twice in June 2017 and in February 2018 without the presence of the Executive Directors and Management to ensure there were no restrictions on the scope of Internal Audit’s works and to discuss any matters the Head of Internal Audit may wish to present. c) Reviewed and deliberated the internal audit reports that highlighted audit issues, recommendations and Management’s responses. Discussed with Management the actions taken to improve the systems of internal control based on suggestions identified in the internal audit reports. Risk Management a) Recommended to the Board, improvements in internal control procedures and risk management. The Chairman of Executive Risk Management Committee (“ERMC”) updated the ARMC quarterly on the risk profiles and risk management of the Group. b) Reviewed the effectiveness of the risk management system and the risk assessment reports from the ERMC. Significant risk issues were summarised and communicated to the Board for consolidation and resolution. c) Considered the risks to the Group’s Information Technology (“IT”) infrastructure and received updates on the Company’s IT penetration test which confirmed that the Group’s IT system and servers are well protected.