MKH Annual Report 2018

65 MKH Berhad Annual Report 2018 AUDIT COMMITTEE REPORT Summary of Work of the Audit Committee (Cont’d) (d) Risk Management Committee • Reviewed the Risk Management Committee’s reports regarding the Group’s risk exposures, including review risk assessment model used to monitor the risk exposures and management’s views/ responses on the acceptable and appropriate level of risks faced by Group’s business unit as well as the proposed recommendations for improvements to be implemented. (e) Related Party Transactions • Reviewed on a quarterly basis if there is any related party transaction(s) entered into by the Group and any conflict of interest situation that may arise within the Group, which are required to be transacted at an arm’s length basis and not detrimental to the interest of the minority shareholders. • Reviewed the annual confirmation from the Board and Audit Committee on related party transaction(s) entered into (if any) for the financial year under review. (f) Annual Reporting • Reviewed the Audit Committee Report, Statement on Risk Management and Internal Control and Corporate Governance Overview Statement to ensure compliance with relevant regulatory reporting requirements prior to recommend the same to the Board for approval. The Audit Committee having reviewed the extent of assistance rendered by management in the course of the audit and based on feedback from the external auditors was satisfied that management had co-operated fully and the external auditors were able to obtain information requested to carry out their work. Based on the review carried out and the report from the external auditors, the Audit Committee recommended the audited financial statements for the FYE 2018 to the Board of Directors for approval on 28 December 2018. The Audit Committee was satisfied with the conduct of external auditors professional work and the timeliness of completion of their works to meet reporting deadline. Accordingly, the Audit Committee recommended the re-appointment of the external auditors, Deloitte PLT at the forthcoming Annual General Meeting. Training During the year, all the Audit Committee have attended various seminars, training programmes and conferences. The list of trainings attended is disclosed on the Corporate Governance Overview Statement at page 57 of the Annual Report. The Internal Audit Function and Its Role The Company has set-up an in-house Internal Audit Department (“IAD”) e ective 1 October 2016. The objective of the internal audit function is to assist the Audit Committee in assessing the adequacy, e ectiveness and integrity of the Group’s system of risk management and internal controls. The IAD is headed by Mr. Saravanan Many, the Senior Manager who is an Associate Member of the Institute of Internal Auditors Malaysia (“IIA Malaysia”) to carry out the internal audit function of the Group and reporting directly to the Audit Committee on its activities based on the approved Annual Internal Audit Plan. The IAD adopts the International Standards for the Professional Practice of Internal Auditing as well as established internal auditing guidelines to enhance its competency and proficiency. The principal role of the internal audit function is to undertake, on a prioritised approach, an independent and systematic assessment of the Group’s system of risk management and internal controls as established by management in addressing the principal business risks faced by the Group. In conducting internal audit of the Group, the internal audit function deployed professional standards promulgated by the IIA Malaysia. During the financial year under review, weaknesses noted in the said system and areas that required improvement, including the recommendations thereof and action plans agreed to be deployed by management to address the issues raised, were highlighted by the internal audit function by way of internal audit reports issued to the Audit Committee.