2019 UEM Edgenta Annual Report

112 EXTERNAL AUDIT D 1. Reviewed with the External Auditors:- a) The audit plan, audit methodology and scope of work, especially on areas identified for audit focus for the year; b) Their comments and issues arising from their annual audit, their audit report and management letter of comments on the group internal control; c) The key audit matters highlighted for inclusion in the audit report and the audit process in addressing them; and d) The Group’s financial reporting process including consolidation. 2. Assessed the objectivity, suitability and independence of the External Auditors in carrying out their audit during the year and this included their appointment for non-audit services. 3. Evaluated the performance of the External Auditors and recommended their re-appointment to the Board of Directors. 4. Reviewed with the External Auditors on 20 November 2019 and 20 February 2020 without the presence of the Managing Director/Chief Executive Officer and Management, on any concerns / issues affecting their audit, the results of audit, including the level of cooperation rendered by Management in respect of their access to financial information and accounting records. INTERNAL AUDIT B 1. Reviewed the Annual Internal Audit Plan which included the planning methodology, manpower requirement and proposed audit activities planned to ensure scope and coverage are adequate and comprehensive. 2. Reviewed the overall performance of the Internal Audit function to ensure its effectiveness in meeting audit objectives and professional standards. 3. Reviewed and deliberated the internal audit findings and observation arising from planned and ad-hoc audit and considered their recommendation to Management for improvement in internal control process. 4. Discussed with Internal Audit, their follow-up on corrective action taken by Management on audit issues to ensure that all the key risks and control lapses have been addressed. 5. Reviewed and approved the Internal Audit Department Scorecard. RISK MANAGEMENT, INTEGRITY & COMPLIANCE C 1. Reviewed prior to the Board’s approval, the updated Risk Management Framework, Risk Profile and Risk Appetite prepared by Management’s Risk Committee to ensure they are relevant and consistent with the Group’s business strategy and level of operations in safeguarding the Group’s assets and profitability. 2. Reviewed and recommended the quarterly Risk Management Status Reports to the Board. 3. Reviewed the adequacy and effectiveness of the overall risk management process. 4. Reviewed and recommended the Statement on Risk Management and Internal Control to the Board for approval. 5. Reviewed and recommended the following framework, policies and procedures to the Board for approval:- a) Code of Conduct (Directors & Employees) b) Code of Conduct (Business Partners) c) Business Continuity Management Framework (updated) d) Conflict of Interest Procedures e) Anti-Bribery and Anti-Corruption Guide f) Whistleblowing Policy and Procedure 6. Reviewed the business licenses and accreditation updates. 7. Reviewed and recommended the establishment and structure of Integrity and Governance Unit. Corporate Governance Overview Statement EFFECTIVE AUDIT & RISK MANAGEMENT (CONT’D)