AUDIT COMMITTEE REPORT The salient matters that the Committee considered during the FY2023 are as described below:- 1. Financial Statements and Reporting The Committee monitored the financial reporting processes for the Group, which include reviewing reports from, and discussing these with, management and the External Auditors. The Committee has reviewed the unaudited quarterly financial results and audited financial statements of the Group before recommending them for Board’s approval. The Committee had also reviewed the External Auditors’ report on other internal controls, accounting and reporting matters and the management representation letter concerning accounting and reporting matters as well as recommendations in respect of control weaknesses noted in the course of their audit. There were no significant and unusual events or transactions highlighted by the management as well as External Auditors during the FY2023. 2. Going Concern Assessment The Committee and the Board reviewed the going concern basis for preparing the Group’s consolidated financial statements, including the assumptions underlying the going concern statement and the period of assessment. The Committee’s assessment was based on presentation by management and took note of the principal risks and uncertainties, the existing financial position, the Group’s financial resources, and the expectations for future performance and capital expenditure. 3. Internal Audit The Group Internal Audit provides independent and objective assurance and advisory services designed to add value and improve the operations of the Group. Its scope encompasses, but is not limited to, the examination and evaluation of the adequacy and effectiveness of the Group’s governance, risk management and internal control processes in relation to the Group’s defined goals and objectives. The Head of Group Internal Audit, reports functionally to the Committee, and the Committee reviewed and approved the annual Internal Audit plan and budget for activities to be undertaken during FY2023. The Committee also reviewed the adequacy of the scope, functions, competency and resources of the internal audit function during the year. The Group Internal Audit performs routine audit on and reviews all operating units within the Group, with emphasis on principal risk areas. Group Internal Audit adopts a riskbased approach towards planning and conduct of audits, which is partly guided by an Enterprise Risk Management (“ERM”) framework. The Committee reviewed the audit reports presented by Group Internal Audit on findings, recommendations and management’s responses thereto and ensure that material findings are adequately addressed by the management. The total costs incurred for the internal audit function of the Group for the FY2023 was RM540,835 (FY2022: RM526,857). 4. Assessing the effectiveness of external audit process The Committee places great emphasis on ensuring that there are high standards of quality and effectiveness in the external audit carried out by the External Auditors. Audit quality is reviewed by the Committee and includes reviewing and approving the annual audit plan to ensure that it is consistent with the scope of the audit engagement. In reviewing the audit plan, the Committee discussed the significant and elevated risk areas identified by the External Auditors which are most likely to give rise to a material financial reporting error or those that are perceived to be of higher risk and requiring additional audit emphasis. The Committee met with the External Auditors without management present, to discuss their audit plan and any issues arising from the audit. The Committee had met privately one (1) time with the External Auditors on 22 May 2023. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 117
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