ANNUAL REPORT 2021 135 GOVERNANCE SUMMARY OF ACTIVITIES UNDERTAKEN BY THE AC (CONT’D) During the FY2021, the AC carried out the following activities in discharging its functions and duties, including the deliberation on and review of:- (cont’d) g) the effectiveness of the internal auditors to ensure they have discharged their functions and responsibilities effectively. h) the related party transactions entered into by the Group to ensure that they were not detrimental to the interests of minority shareholders. i) the Terms of Reference of AC to ensure that most of the good practices recommended in the MCCG have been implemented by the Company. j) complaints / cases reported in relation to the Whistle Blowing policy. TRAINING AND EDUCATION During the financial year, the AC 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 Senior Management in achieving its corporate goals. During the FY2021, the internal audit function of the Group is outsourced to an independent internal audit professional firm, Vaersa, which reports directly to the AC and assists the Board in monitoring and managing risks and internal controls. The AC is satisfied that Vaersa’s independence have been maintained as adequate measures are in place. The AC 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 AC and in this regard, Senior 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. The total cost incurred for the internal audit function for the financial year under review was approximately RM30,000. Further details of the internal audit function are set out in the Risk Management and Internal Control Statement on pages 137. AUDIT COMMITTEE REPORT (CONT’D)
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