My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 108 B. EFFECTIVE AUDIT AND RISK MANAGEMENT I. AC %VSJOH ': UIF "$ DPOTJTUT PG UISFF *OEFQFOEFOU /PO &YFDVUJWF %JSFDUPST BOE BMM PG UIFN BSF àOBODJBM literate and have sufficient understanding of the Group’s business. All the members of the AC undertook continuous professional development to keep abreast of relevant developments in accounting and auditing standards, practices and rules. The composition of the AC is presented in the AC Report on page 111 of this report. The Chairman of the AC is not the Chairman of the Board, ensuring that the impairment of objectivity on the Board’s review of the AC’s findings and recommendation remains intact. The AC’s Terms of Reference has adopted a terms of reference which sets out its goals, objectives, duties, responsibilities and criteria on the composition of the AC which includes a former key audit partner of the Group UP PCTFSWF B DPPMJOH PGG QFSJPE PG BU MFBTU UXP ZFBST CFGPSF CFJOH BCMF UP CF BQQPJOUFE BT B NFNCFS PG UIF AC. In presenting the annual audited financial statements and interim financial statements on a quarterly basis to the shareholders, the Board is responsible to present a clear, balanced and understandable assessment of the Group’s performance and position. The AC is entrusted to provide assistance to the Board in reviewing the Group’s financial reporting process and accuracy of its financial results, and scrutinising information for disclosure to ensure accuracy, adequacy, completeness and compliance with the accounting standards. The Board places great emphasis on the objectivity and independence of the external auditors. Through the AC, the Board maintains a transparent relationship with the external auditors in seeking professional advice on the internal control and ensuring compliance with the appropriate accounting standards. The AC is empowered to communicate directly with the external auditors to highlight any issues of concern at any point in time. The external auditors would meet the AC without the presence of the executive Board members and management at least two (2) times a year on matters relating to the Group and its audit activities. During such meetings, the external auditors highlight and discuss the nature and scope of the audit, audit programme, internal controls and any other issues that may require the attention of the AC or the Board. The AC ensures the external audit function is independent of the activities it audits and reviews the contracts GPS UIF QSPWJTJPO PG OPO BVEJU TFSWJDFT CZ UIF FYUFSOBM BVEJUPST JO PSEFS UP NBLF TVSF UIBU JU EPFT OPU HJWF SJTF UP conflict of interests. The excluded contracts would include management consulting, internal audit and standard operating policies and procedures documentation. 'PS UIF ': GFFT QBJE UP UIF FYUFSOBM BVEJUPST .FTTST $SPXF .BMBZTJB 1-5 BOE JUT BGàMJBUFE àSNT CZ UIF (SPVQ BSF TUBUFE JO UIF UBCMF CFMPX Nature of Services Company (RM’000) Subsidiaries (RM’000) Audit 312 Non-Audit Review of the Risk Management and Internal Control Statement 3 The external auditors have confirmed to the AC 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 AC may be found in the AC Report on page 111 to page 117 of this report. CORPORATE GOVERNANCE STATEMENT (CONT’D)