MALAYSIA Law and Practice Contributed by: Dato’ Tan Yee Boon, Stephanie Chan Pik Jia and Joaana Keng Li Xin, David Lai & Tan
• the adequacy of the experience and resourc - es of the accounting firm; • the persons assigned to the audit; • the accounting firm’s audit engagements; • the size and complexity of the company’s group; and • the number and experience of supervisory and professional staff assigned to the audit. The auditor must uphold high ethical standards throughout the audit process, ensuring objectiv - ity, integrity and professionalism in their work. 7.2 Requirements for Directors Concerning Management Risk and Internal Controls Reviewing the effectiveness of risk management and internal control is an essential part of the directors’ responsibilities and should be per - formed at least annually. Pursuant to paragraph 15.26 (b) of the Listing Requirements, the Board shall include in the company’s annual report a
statement detailing the risk management and internal control systems of the public listed com - pany as a group. The directors are required to form their own independent view on the effective - ness of governance and internal controls based on the information and assurances presented to them. In doing so, directors must exercise the standard of care, diligence and skill expected of them in fulfilling their fiduciary responsibilities. Directors’ responsibilities include: • ensuring that risk management is embedded across all aspects of the company’s activities; • determining the company’s risk appetite; and • overseeing the adequacy of the risk man - agement framework, including the underly - ing processes, roles and responsibilities, to determine whether they provide reasonable assurance that risks are managed within acceptable parameters and internal control systems.
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