Ntegrator International Ltd. - Annual Report 2020

24 CORPORATE GOVERNANCE REPORT ACCOUNTABILITY AND AUDIT (continued) Principle 9: Risk Management and Internal Controls (continued) The AC oversees risk governance which includes the following roles and responsibilities: • proposes the risk governance approach and risk policies for the Group to the Board; • reviews the risk management methodology adopted by the Group; • reviews the strategic, financial, operational, regulatory, compliance, information technology and other emerging risks relevant to the Group identified by Management; and • reviews Management’s assessment of risks and Management’s action plans to mitigate such risks. Yang Lee & Associates, a professional service firm, is engaged to assist the AC with its oversight of risk management ( Provision 9.1 of 2018 Code ) and to facilitate the maintenance of the Group’s enterprise risk management framework which covers operational, financial, compliance and information technology risks. Under the framework, risk registers with related treatment plans on risks faced by the Group are maintained, tracked by the responsible managers and reported to the Board. Based on risks identified, assurance activities such as controls self-assessments and internal audits are planned with a set of measurement criteria and targets established for each assurance activity covered. Results of assurance activities are presented to the AC annually to support the opinion under Catalist Rule 1204(10). Based on the results of assurance activities, the Group had met the targets established for FY2020. Based on the internal controls established and risk management framework maintained by the Group, work performed by the internal and external auditors, and reviews performed by Management, various Board Committees and the Board and assurance activities conducted, the Board (with concurrence of the AC) is satisfied that the Group’s internal controls (including financial, operational, compliance and information technology controls) and risk management systems are adequate and effective ( Provision 10.1(b) of 2018 Code ). No material weaknesses of internal controls and risk management systems were identified in respect of FY2020. The Board notes that the system of internal controls and risk management established by the Company provides reasonable, but not absolute, assurance that the Company will not be adversely affected by any event that can be reasonably foreseen as it strives to achieve its business objectives. However, the Board also notes that no system of internal controls and risk management can provide absolute assurance in this regard, or absolute assurance against the occurrence of material errors, poor judgement in decision-making, human error, losses, fraud or other irregularities. In respect of FY2020, the Board has received the following assurance ( Provision 9.2 of 2018 Code ):– (a) Written confirmation from the Managing Director and the Financial Controller that the financial records have been properly maintained and the financial statements of the Company for FY2020 give a true and fair view of the Company’s operations and finances; and (b) Written confirmation from the Managing Director, the Financial Controller and relevant Key Management Personnel that the Company’s risk management and internal controls (including financial, operational, compliance and information technology controls) systems are adequate and effective. Principle 10: Audit Committee (AC) The Board has an Audit Committee which discharges its duties objectively. The AC comprises 3 Directors, all of whom are Independent Directors ( Provision 10.2 of 2018 Code ). The composition of the AC is as follows:- Charles George St. John Reed (Chairman) Lai Chun Loong Lee Keen Whye