Page 98 - MSM_AR2020

CHAIRMAN’S DELIVERING MSM MANAGEMENT DISCUSSION GROUP FINANCIAL
STATEMENT VALUE OVERVIEW & ANALYSIS REPORT

AuDIT, GOVERNANCE AND RISk COMMITTEE REPORT

• Reviewed the following reports and recommended A training on the Malaysian Financial Reporting Standards
them for the Board’s approval for inclusion in the (“MFRS”) was conducted by PwC on 1 December 2020,
Annual Report for the financial year 2019: which provided update to the Committee on MFRS
impacting MSM Group.
i) Corporate Governance Overview Statement.
Further details on the training attended by the Committee
ii) Audit Committee Report. members during the financial year 2020 are detailed out
in the Corporate Governance Overview Statement under
iii) Statement on Risk Management and Internal Control.
Directors’ Training on page 84 of this Annual Report.
iv) Sustainability Reporting on Economic, Environmental
96 and Social. COMMITTEE EVALUATION
The Committee reviewed the reports with focus on For year of assessment 2020, Board Evaluation Assessment
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
meeting the MMLR and reporting best practises based was carried out in 2021 which encompassed the
on the guidance from the MCCG 2017, Guidance to performance of the Committee and its Chairman as
Directors of Public Listed Companies on the Statement well as the Independence of the Independent Directors.
on Risk Management and Internal Control and other The assessment focused on how effective the Committee
best practise references. had conducted its activities in 2020.

• Reviewed and approved the schedule of Audit
Committee meetings for year 2021. INTERNAL AUDIT FUNCTION
The Internal Audit function for MSM Group is outsourced
ExTERNAL AUDITOR POLICY to the holding company, FGV Holdings Berhad (“FGV”)
Group Internal Audit (“GIA”) Division. The Chief Internal
The External Auditor Policy (“Policy”) was developed Auditor reports functionally directly to the AGRC of MSM.
to provide guidance on matters related to dealing with The conduct of GIA is based on a Group Internal Audit
the firm of professional accountants which is or will be Charter, which was established consistent with the
appointed as the External Auditor for the statutory audit requirements of Institute of Internal Auditor’s International
of MSM Group. This policy was approved by the Board on Professional Practise of Framework and affirmed through a
23 February 2016.
Quality Assurance Review once every five (5) years with the
The Policy covers appointment and re-appointment most recent review in 2020.
of external auditors, assessment of external auditors’ The Chief Internal Auditor, Zalily Mohd. Zaman Khan, is a
performance and independence, audit partner rotation, audit fellow member of CPA Australia, a professional member
delivery and reporting, engagement of external auditor for of the Institute of Internal Auditors Malaysia, a Certified
non-audit services and removal of external auditor.
Internal Auditor of the Institute of Internal Auditors, USA
During the financial year ended 31 December 2020, and holds an accounting degree from University of South
other than the assurance service for review of Quarterly Australia. She has accumulated over 30 years of experience
Bursa announcement, there was no other non-audit in various industries.
services rendered by the external auditors.
Four (4) internal auditors comprising of a Senior General
Manager, a Senior Manager and one team of two (2)
CONTINUOUS LEARNING AND DEVELOPMENT persons are specifically assigned for audits of MSM Group
throughout the financial year. The team is supplemented
The Committee members are regularly kept updated on with personnel from other segments of FGV’s GIA’s Division
changes to accounting standards and issues related to where it is deemed required. This includes the IT audit,
financial reporting through quarterly meetings.
investigation and consulting support.
The members of the Committee had attended various
seminars, training programme and conferences to keep
abreast with changes in the industry and business
environment.