Annual Report 2020

B) EXTERNAL AUDIT 1. Reviewed with the External Auditors: - • The audit plan, audit strategy and scope of work, especially on areas identified for audit focus for the year; • The audit adjustments and issues arising from their annual audit, including their comments on the Group’s financial reporting and internal accounting control; • The audit report and key audit matters highlighted for inclusion therein and the audit process in addressing them; and • The Group’s financial reporting process including consolidation. 2. Assessed the objectivity, and independence of the External Auditors in carrying out their audit during the financial year and this included their appointment for non-audit services. 3. Evaluated the performance and competency of the External Auditors and recommended their re- appointment to the Board of Directors. 4. Met with the External Auditors on 30 May 2019 and 27 February 2020 without the presence of the Executive Directors and Management, to review any concerns/issues affecting their audit, including the level of cooperation rendered by Management relating to their access to financial information and accounting records. 5. Reviewed and recommended the appointment of the Company’s External Auditors for the provision of non-audit services, after assessing and considering the following:- • The nature of the non-audit provided services by the external auditors or its affiliates and fees paid for such services relative to the audit fee; • The scope of work as required are permitted under the Malaysian Institute of Accountants By- Laws; and • The services would not impair their independence or there were safeguards against threat to the objectivity and independence of the audit arising from the provision of non-audit services or tenure of the external auditors. C) INTERNAL AUDIT 1. Reviewed the Annual Internal Audit Plan which included the methodology, manpower requirement and proposed internal audit activities planned. 2. Reviewed the overall performance of the outsourced internal auditor to ensure their effectiveness in meeting audit objectives and professional standards. 3. Reviewed and deliberated the internal audit findings and observations arising from planned and ad- hoc audit and considered their recommendation to Management for improvement in internal control process. 4. Discussed with Internal Auditor pertaining to follow-up review and corresponding corrective actions taken by Management on audit issues to ensure that all the key risks and control lapses have been addressed. Annual Report | 2020 QL Resources Berhad 84 Audit Committee Report