My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 80 B. EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) I. ARMC (cont’d) The external auditors have confirmed to the ARMC that they are, and have been, independent throughout the conduct of the audit engagement in accordance with the independence criteria set out by the Malaysian Institute of Accountants. Further information on the roles and responsibilities of the ARMC may be found in the ARMC Report on page 82 to page 88 of this Annual Report. II. Risk Management and Internal Control Framework The Board assumes ultimate responsibility for the effective management of risk across the Group, determining its risk appetite as well as ensuring that each business area implements appropriate internal controls. In order to achieve such objective, a risk management framework has been adopted by the Group. The Group’s risk management systems are designed to manage, mitigate and eliminate risks (where possible) to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board has delegated its responsibility for reviewing the effectiveness of the Group’s systems of internal control to the ARMC. This covers all material controls including financial, operational, compliance and risk management systems. The ARMC is further supported by a number of sources of internal assurance within the Group in order to determine the adequacy and effectiveness of the framework. The Group has outsourced the internal audit function as being the most cost effective means of implementing an internal audit function. The independent third party service provider of the internal audit services for the FP2019 was Vaersa Advisory Sdn. Bhd. (“ Vaersa ”), which reported directly to the ARMC as specified in the Terms of Reference of the ARMC. The internal auditors carry out its function in accordance with the approved annual Internal Audit Plan approved by the ARMC. Vaersa has approximately eight (8) audit personnel assisting the person responsible for the internal audit. Details on the person responsible for the internal audit are as set out below:- Name Ramnath R Sundaram Qualification Associate of Chartered Certified Accountant Independence Does not have any family relationship with any director and/or major shareholder of the Company Public Sanction or penalty Has no convictions for any offences within the past 5 years, other than traffic offences, if any and has not been imposed any public sanction or penalty by the relevant regulatory bodies during the financial period. Further information may be found in the Risk Management and Internal Control Statement on page 89 to page 91 and the Management Discussion and Analysis on page 12 to page 18 of this Annual Report. CORPORATE GOVERNANCE STATEMENT (CONT’D)