ABC Bhd is a profitable company listed on the Bursa Malaysia in a techonology – related service industry with annual sal

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ABC Bhd is a profitable company listed on the Bursa Malaysia ina techonology – related service industry with annual sales of RM250million. The industry is highly competitive but there are majorbarriers to entry for new competitors and the long – term future ofABC Bhd is ocnsidered to be sound. The Board comprises a non –executive chair, a chief executive who has large shareholding, anexecutive finance director, operation director and marketingdirector and non – executive director with wide knowledge of theindustry that has resigned 3 years ago. The board only has onecommittee, an audit committee. The audit committee consists of thechair, non executive director and finance director. Nevertheless,the Audit Committee never convened a meeting as the Chair decidedthat everything should be discussed in the Board Meeting. There isno internal audit function in ABC Bhd but the external auditors arerelied on to report on any weaknesses in control and their letterof engagement authorises them to carry out work over and above thefinancial audit in relation to internal control. The externalauditors always given a ‘clean’ audit report to the company and thehave reported the internal controls within ABC Bhd are sound.There is no formal risk management committee in the company this noproper risk management process although board meetings routinelydiscuss and consider risk during their deliberations.
Based on the above scenario found in ABC Bhd briefly explain anyFIVE (5) analysis of the corporate governance practice