Ntegrator International Ltd. - Annual Report 2020

25 CORPORATE GOVERNANCE REPORT ACCOUNTABILITY AND AUDIT (continued) Principle 10: Audit Committee (AC) (continued) The duties of the AC include ( Provision 10.1 of 2018 Code ):– (a) reviewing significant financial reporting issues and judgements so as to ensure the integrity of financial statements of the Company and any announcements relating to the Company’s financial performance; (b) reviewing and reporting to the Board at least annually the adequacy and effectiveness of the Company’s internal controls, including financial, operational, compliance and information technology controls, and risk management systems (such review can be carried out with the assistance of any competent third parties); (c) reviewing the assurance from the Managing Director and the Financial Controller on the financial records and financial statements; (d) reviewing the adequacy, effectiveness, independence, scope and results of the external audit and the Company’s internal audit function; (e) making recommendations to the Board on the proposals to shareholders on the appointment, re-appointment and removal of the external auditors, and approving the remuneration and terms of engagement of the external auditors; and (f) reviewing the policy and arrangements for concerns about possible improprieties in financial reporting or other matters to be safely raised, independently investigated and appropriately followed up on. All AC members possess extensive business and financial management expertise or experience and at least 2 of them (including the AC Chairman) have recent and relevant accounting or related financial management expertise or experience ( Provision 10.2 of 2018 Code ). None of the AC members or, the AC Chairman are former partners or, Directors of the Company’s existing auditors ( Provision 10.3 of 2018 Code ). The AC assists the Board in its oversight of financial, risk, audit and compliance matters. The AC reviews the scope of work and the effectiveness of both Internal and External Auditors and the assistance given by the Company’s officers to the External Auditors. It meets with the Company’s Internal Auditors and External Auditors to review their audit plans and discuss the results of their respective examinations and their evaluation of the Group’s operations and system of internal accounting controls to the Board annually. The AC met the Internal Auditors and External Auditors without the presence of Management at least once a year ( Provision 10.5 of 2018 Code ). The AC also reviewed transactions with interested persons and related parties (if any) and, recommended the appointment or re-appointment of External Auditors, after taking into consideration the External Auditors’ performance and Audit Quality Indicators relating to the External Auditors at firm level and audit engagement level and the Group’s requirements. The External Auditors provide regular updates and periodic briefing to the AC on changes or amendments to accounting standards to enable AC members keep abreast with such changes and their corresponding impact, if any, on financial statements. The AC performed independent reviews of the financial statements of the Company and the Group and any announcement relating to the Company’s performance. No significant issues were noted by the AC. The AC reviewed audit and non-audit fees and the independence of the External Auditors. No non- audit services were provided by the External Auditors in FY2020. The AC has received confirmation of independence from the External Auditors and is satisfied that the External Auditors are independent. The Company has complied with Catalist Rules 712 and 715 in respect of the appointment and re- appointment of External Auditors. Catalist Rule 716 is not applicable to the Company. The AC has explicit authority to investigate any matter within its terms of reference, full access to and co-operation by Management and full discretion to invite any personnel to attend its meetings and, reasonable resources to enable it to function properly.