Serba Dinamik Annual Report 2016

092 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P AUDIT COMMITTEE REPORT (Cont’d) d) External Audit o Recommend the nomination of external auditors, the audit fees and any question of resignation or dismissal of external auditors and thereafter report the same to the Board. o Review and discuss with the external auditors, before the audit commences, the nature and scope of the audit, and discuss any significant problems that may be foreseen with the external auditors before the audit commences, and ensure co-ordination where more than one audit firm is involved, and ensure that the audit is carried out effectively and efficiently for the Group; o Discuss problems and reservations arising from the internal and final audits, including assistance given by the employees and any matters the auditors may wish to discuss, in the absence of Management or Executive Directors where necessary. o Review the external auditor’s management letter and management’s response including the status of the previous audit recommendations. e) Related Party Transactions o Review any related party & recurrent related party transaction and conflict of interest situation that may arise within the Group including any transaction, procedure or course that raises questions of management integrity. f) Compliance o Review the effectiveness of the system for monitoring compliance with laws and regulations and the results of Management’s investigation and follow-up (including disciplinary action) of any instances of non-compliance. o Review the findings of any examinations by regulatory authorities. o Obtain regular updates from Management and the Group’s legal counsel regarding regulatory compliance matters. o Review and consider any related party & recurrent related party transaction and conflict of interest situation that may arise within the Group including any transaction, procedure or course of conduct that raises questions of management integrity. g) Risk Management o Provide oversight, guidance and direction to the Group’s risk management function and processes. o Recommend the Group’s risk management policies, strategies and risk tolerance levels, and any proposed changes thereto for the Board’s consideration and approval. o Ensure that Management integrates the necessary risk management processes into all business processes of the Group. o Evaluate the effectiveness of the Enterprise Risk Management framework, risk management processes and support system to identify, assess, monitor and manage the Group’s key risks. o Review the risk identification and management process developed by Management to confirm it is consistent with the Group’s strategy and business plan. o Review Management’s assessment of risk on a quarterly basis and provide quarterly updates to the Board. o Enquire Management and the independent auditor about the exposure to such risks in relation to significant business, political, financial and control risks. o Assess the steps/actions Management has implemented or wish to implement to manage and mitigate identifiable risk, including the use of hedging and insurance. o Deliberate on compliance related matters of the Group and review the effectiveness of systems for monitoring compliance with laws and regulations. o Review findings, material issues or non-compliances highlighted by the regulatory authorities in relation to the regulated businesses of the Group. o Deliberate, review and evaluate the existing compliance framework and to recommend measures for improvement by adopting the best practices. o Perform any other roles and responsibilities as may be required by the Board from time to time and/or which are related to the objectives of the Committee.