Serba Dinamik Annual Report 2019

200 2019 ANNUAL REPORT CORPORATE GOVERNANCE SERBA DINAMIK HOLDINGS BERHAD ARC executed the following activities during the financial year ended 31 December 2019: FINANCIAL REPORTING ARC reviewed the unaudited quarterly financial results as well as the annual audited financial statement of the Group, and recommended the same to the Board for approval. The reviews were focused particularly on significant changes to accounting policies and practices, adjustments arising fromthe audits, compliancewith the relevant accounting standards and other legal requirements to ensure that the financial statements presented a true and fair view of the Group’s financial performance. EXTERNAL AUDIT • Reviewed the external auditors’ report which summarised key findings arising from the audit of the financial statements for the year ended 31 December 2019 and reviewed the Directors’ Statement on Risk Management and Internal Control; • Reviewed with the external auditors’ APM for the financial year ended 31 December 2019 which outlines audit materiality, audit scope, methodology and timing of audit, key milestones, involvement of IT specialists, audit focus areas, adoption and transition of accounting standards and proposed fees for the audit services rendered by the external auditors for the financial year; • Reviewed the written assurance provided by the external auditors in respect of their independence; and • Met with the external auditors twice without the presence of the GMD/CEO and the Management during the year under review. SUMMARY OF ACTIVITIES INTERNAL AUDIT • Approved the internal audit (“IA”) framework and the annual audit plan to ensure adequate scope, resources and comprehensive coverage over the activities of the Group and ensured that all high-risk areas are audited at least annually; • Reviewed and monitored the IA’s performance, progress of achievement of approved annual audit plan and adequacy of audit coverage on a quarterly basis. • Reviewed and approved the action plans to address the competency gaps and audit methodology of the IA Function. • Monitored the progress of the corrective actions taken by Management to ensure appropriate remedial actions were taken on a timely basis to address all key areas of risk and control issues. RISK MANAGEMENT ARC reviewed the Group Risk Register on a quarterly basis and also deliberated on the risk exposures and the proposed mitigation plans, and reported to the Board. RELATED PARTY TRANSACTION & RECURRENT RELATED PARTY TRANSACTION ("RPT & RRPT") • Reviewed and discussed reports on RPT & RRPT and possible conflict of interest transactions to ensure that all RPT and RRPT were undertaken on arm’s length basis and on normal commercial terms, consistent with the Group’s usual business practices and policies, which are not more favourable than those generally available to the public and other suppliers and are not detrimental to the minority shareholders. • Monitored the threshold of the RPT and RRPT to ensure compliance with the MMLR. 1. 3. 4. 5. 2. A U D I T & R I S K C O M M I T T E E R E P O R T