The Chief Internal Auditor, Zalily Mohd. Zaman Khan, is a fellow member of CPA Australia, a professional member of the Institute of Internal Auditors Malaysia, a Certified Internal Auditor of the Institute of Internal Auditors, USA and holds an accounting degree from University of South Australia. She has accumulated over 30 years of experience in various industries. Four (4) internal auditors comprising of a Senior General Manager, a Senior Manager and one (1) team of two (2) persons are specifically assigned for audits of MSM Group throughout the financial year. The total cost incurred for the financial year ended 31 December 2021 was RM1,449,067 (2020: RM1,380,064). The qualification and professional status of the internal auditors together with their independence and objectivity are disclosed in the Corporate Governance Report on Practice 11.1 and 11.2. SUMMARY OFWORK OFTHE INTERNAL AUDIT FUNCTION During the financial year under review, the Internal Audit function has undertaken the following main activities: a. Prepared and developed the Annual Internal Audit Plan of MSM Group for year 2022 and presented the same to the AGRC for approval. b. Performed internal audits according to the Annual Internal Audit Plan approved by the AGRC and reported the findings, recommendations and Management’s corrective action directly to the AGRC with copies to the relevant Management for their action. The scope of work was focused on the following key areas: • Governance Framework and Structure; • Inventory Management; • Production Management; • Repair and Maintenance; • Financial closing at Subsidiary Level; • Pay-per-use Mechanism; and • Information Technology. In 2021, the Internal Audit function performed 16 internal audit assignments (i.e. 6 assurance audits and 10 investigations) which consumed 1,969 mandays in comparison to 645 budgeted mandays during the year. c. Presented to the AGRC at its quarterly meetings, the summary observations and recommendations and Management’s corrective action implementation from the internal audit reports are issued. d. Performed investigative audit and presented to the AGRC the conclusions and subsequently seeking the recommendation and direction from AGRC on action to be taken. e. Undertook Recurrent Related Party Transactions review for the purpose of supporting the Committee’s statement in the Circular to the shareholders to seek mandate on new and existing Recurrent Related Party Transactions of the Group. STATEMENT BYTHE BOARD This Audit, Governance and Risk Committee Report was made in accordance with a resolution of the Board of Directors duly passed on 21 March 2022. SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 235
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