My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 86 COMPOSITION AND TERMS OF REFERENCE (CONT’D) The Terms of Reference of the ARMC, during FP2019 were as follows: (cont’d) 8. Duties (cont’d) g) To consider the appointment and/or re-appointment of external auditors, the audit fee and any questions of resignation or dismissal including recommending the nomination of person or persons as external auditors. In considering the appointment and/or re-appointment of the external auditors, to consider among others:- z the adequacy of the experience and resources of the accounting firm; z the persons assigned to the audit; z the accounting firm’s audit engagements; z the size and complexity of the Group being audited; and z the number and experience of supervisory and professional staff assigned to the particular audit. The ARMC shall also consider the performance of the external auditors and its independence annually as below:- z the competence, audit quality and resource capacity of the external auditors in relation to the audit; z the external auditor’s ability to meet deadlines in providing services and responding to issues in a timely manner as contemplated in the external audit plan; z the nature of the non-audit services provided by the external auditors and fees paid for such services relative to the audit fee; z whether there are safeguards in place to ensure that there is no threat to the objectivity and independence of the audit arising from the provision of non-audit services or tenure of the external auditors; and z obtaining written assurance from the external auditors confirming that they are and have been independent throughout the conduct of the audit engagement and in accordance with the terms of all relevant regulatory requirements. h) To review and approve the non-audit services provided by the external auditors and/or its network firms to the Group for the financial period, including the nature of the non-audit services, fees for the non-audit services relative to the external audit fees and safeguards deployed to eliminate or reduce the threat to objectivity and independence in the conduct of the external audit resulting from the non-audit services provided. In the event that the non-audit fees paid to the Group’s external auditors, or a firm or corporation affiliated to the external auditors’ firm are significant (e.g. constitute 50% of the total amount of audit fees paid to the Group’s external auditors) the Group is required to state the details on the nature of non-audit services- rendered in the ARMC Report. i) To review the adequacy of Group’s risk management framework, monitor principal risks that affect the Group and evaluate risk management and mitigation measures in place. j) To assess the adequacy and effectiveness of the risk management process, system of internal controls and accounting control procedures of the Group. k) To review the statement with regard to the state of risk management and internal controls of the Group for inclusion in the annual report and report the same to the Board. l) Communication and monitoring of risk management results to the Board. m) To consider other areas as defined by the Board or as may be prescribed by Bursa Securities or any other relevant authority from time to time. AUDIT AND RISK MANAGEMENT COMMITTEE REPORT (CONT’D)