My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 87 SUMMARY OF ACTIVITIES UNDERTAKEN BY THE ARMC During the FP2019, the ARMC carried out the following activities in discharging its functions and duties, including the deliberation on and review of:- a) the unaudited quarterly financial statements of the Group to ensure that they are in compliance with the requirements of relevant authorities, prior to the submission to the Board for their approval and release of the Group’s results to Bursa Securities. b) the annual report and annual audited financial statements of the Group prior to submission to the Board for their consideration and approvals. c) the audit plan of the external auditors in terms of their scope of audit prior to their commencement of the annual audit. d) the external auditors’ report in relation to audit and accounting issues arising from the audit; matters arising from the audit of the Group in meetings with the external auditors without the presence of the executive Board members and Management. e) the re-appointment of external auditors and their audit fees, after taking into consideration the independence and objectivity of the external auditors and the cost effectiveness of their audit, before the recommendation to the Board for approval. f) the internal audit reports which outlined the recommendations towards correcting areas of weaknesses and ensure that there were management action plans established for the implementation of the internal auditors’ recommendation. g) the effectiveness of the internal auditors and the re-appointment of internal auditors and made the appropriate recommendation to the Board. h) the ARMC Report and Risk Management & Internal Control Statement before recommending the same to the Board for approval. i) the related party transactions entered into by the Group to ensure that they were not detrimental to the interests of minority shareholders. j) the report on the risk management of the Group presented by the Management. k) the extent of the Group’s compliance with the provisions set out under the MCCG for the purpose of preparing the Corporate Governance Statement and Risk Management and Internal Control Statement pursuant to MMLR of Bursa Securities and the MCCG. TRAINING AND EDUCATION During the financial period, the ARMC members attended individually or collectively seminar(s), conference(s) and/ or training(s) to continuously upgrade their skills and to keep abreast of current developments to enhance their knowledge and enable them to discharge their duties more effectively. INTERNAL AUDIT FUNCTION The internal audit function is designed based on a risk-based approach to evaluate and enhance the Group’s risk management, controls and governance processes to assist the Management in achieving its corporate goals. During the FP2019, the internal audit function of the Group is outsourced to an independent professional firm, Vaersa, which reports directly to the ARMC and assists the Board in monitoring and managing risks and internal controls. The ARMC is satisfied that Vaersa’s independence have been maintained as adequate measures are in place. The ARMC is contented that Vaersa has sufficient resources and is able to access information to undertake its duties effectively. The internal audit reviews were carried out in accordance with the approved internal audit plan which covered the adequacy and effectiveness of the operational controls in mitigating risks, compliance with established policies and procedures, authority limits and applicable laws. The results of the reviews were formally reported to the ARMC and in this regard Management has taken note of the findings and duly acted upon the recommendations made by Vaersa. The internal audit reviews did not reveal any significant weaknesses and consequential provides reasonable assurance on the effectiveness of the Group’s systems of internal control and the adequacy of these systems to mitigate business risks and to safeguard the Group’s assets and resources. AUDIT AND RISK MANAGEMENT COMMITTEE REPORT (CONT’D) GOVERNANCE