32 EXCEL FORCE MSC BERHAD PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) I Audit Committee (Cont’d) 9.0 There is an effective and independent audit committee. The Board is able to objectively review the audit committee’s findings and recommendations. The Company’s and the Group’s financial statements is a reliable source of information. (Cont’d) 9.2 In preparing the financial statements, the Board is required to:- • Adopt suitable accounting policies consistently; • Make judgments and estimates that are prudent and reasonable; • Comply with applicable accounting standards; • Prepare financial statements on a going concern basis unless otherwise stated; and • Ensure proper keeping of accounting records with reasonable accuracy. The Board is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Company and of the Group and to ensure that the financial statements comply with the Companies Act. The Board is satisfied that in preparing the financial statements of the Group and of the Company for the financial period ended 30 June 2023, the Group and the Company have used appropriate accounting policies and applied them consistently and prudently. The Board is of the opinion that the financial statements are prepared in accordance with all relevant approved accounting standards and have been prepared on a going concern basis. 9.3 The Group practices the cooling off period of at least three years to safeguard the independence of the audit by avoiding potential threat which may arise when a former audit partner is in a position to exert significant influence over the audit and preparation of the Group's and of the Company’s financial statements. 9.4 The AC assesses the suitability, objectivity and independence of the external auditors which also take into account their audit transparency report on an annual basis, the AC establishes policies and procedures that consider among others: • The competence, audit quality and resource capacity of the external auditor in relation to the audit; • The nature of the non-audit services rendered and the appropriateness of the level of fees; and • Obtain written assurance from the external auditors confirming that they are, and have been, independent throughout the conduct of the audit engagement in accordance with the terms of the external professional and regulatory requirements. 10.0 The Company make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives. The Board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company's objectives is mitigated and managed. 10.1 The Group has an Internal Audit Function that is independent of its activities and operations. Further details of the activities of the Internal Audit Function are set out in the Statement on Risk Management and Internal Control of this Annual Report. The Board emphasises on the adequacy of the internal control system and takes effective approaches to supervise the implementation of related control measures, whilst enhancing operation efficiency and effectiveness, and improving corporate governance, risk assessment, risk management and internal control so as to protect the shareholders' investment and the safety of the Company's assets. 10.2 The Group has established Risk Management Committee of the Management ("RMCM") on 18 January 2018 and is headed by the Managing Director and members are comprise of senior management team. The primary responsibility and purpose of RMCM is to assist the Board in fulfilling its responsibility with respect to evaluating, reviewing and monitoring the Group's risk management framework on an on-going basis. The RMCM reports to AC and the Board in implementing and ensuring effective risk management of the Company. Corporate Governance Overview Statement (Cont’d)
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