MKH Annual Report 2018

Summary of Work of the Audit Committee During the financial year ended 30 September 2018 (“FYE 2018”), 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 of the Group focusing on key material matters and to ensure the disclosures are in compliance with the Malaysian Financial Reporting Standard 134 - Interim Financial Reporting and applicable disclosure provisions in the Listing Requirements before recommending to the Board of Directors for approval to release the quarterly financial results to Bursa Securities. • Reviewed the audited financial statements of the Company and the Group for the FYE 2018 together with the external auditors prior to tabling the audited financial statements to the Board for approval. • 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 FYE 2018 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. • Reviewed and approved the internal audit charter. (c) External Audit • Reviewed and approved the external auditors annual audit planning memorandum of the Group for the FYE 2018, 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. • Held private sessions with the external auditors without the presence of Executive Directors and management, to discuss the audit findings and any other observations they may have during the audit process. There were no major concerns/ issues raised by the external auditors at the meetings. • Discussed with external auditors on significant accounting and auditing updates arising from new or proposed changes in accounting standard and regulatory requirements in relation to the financial statements. • Evaluated the performance and assessed the independence and objectivity of the external auditors in providing their services and made recommendations to the Board on their re-appointment and remuneration. 64 MKH Berhad Annual Report 2018 AUDIT COMMITTEE REPORT