Ni Hsin Berhad Annual Report 2018

Annual Report 2018 Ni Hsin Resources Berhad (653353-W) 27 4. INTERNAL AUDIT FUNCTION The Group recognises that an internal audit function is essential in ensuring the effectiveness of the Group’s system of internal control and is an integral part of the risk management process. The Company has outsourced its internal audit function to a professional service firm, namely IBDC (Malaysia) Sdn Bhd (“ IBDC ”) whose primary responsibility is to independently assess and report to the Board, through the ARMC, the systems of internal control of the Group. The internal audit functions are set out in the Statement on Risk Management and Internal Control on pages 28 to 31 of the Annual Report. Details of the audit personnel from IBDC that carried out the internal audit work for the financial year 2018 are as follows:- Name Qualification & Accreditation Yeoh Chin Hoe Director-In-Charge • IIAM Chartered Audit Committee Director (No. 0039) • Fellow of Association of Chartered Certified Accountant (ACCA) • Member of Malaysia Institute of Accountants (MIA) • Member of Malaysia Institute of Certified Public Accountants (MICPA) • Master Degree in Business Administration (General Management) Bhavanpreet Kaur Senior Consultant • IIAM Associate Member (No. 210178) • Bachelor of Accounting (Hons.) Tan Han Min Associate Consultant • Bachelor of Commerce (Hons.) • ACCA Finalist During the financial year, the Internal Auditors carried out internal audit reviews based on an annual audit plan approved by the ARMC to assess the adequacy and integrity of the system of internal control as established by the Management, so as to provide reasonable assurance that:- • the system of internal control continues to operate satisfactorily and effectively; • assets and resources are safeguarded; • integrity of records and information is protected; • internal policies, procedures and standards are adhered to; and • applicable rules and regulations are complied with. The scope of work, as approved by the ARMC, was essentially based on the risk profiles of companies in the Group, where areas of higher risk were included for internal audit. The internal audit covered key operational, financial and compliance controls, including the risk management process deployed by Management. Audit findings and areas of concern that need improvements were highlighted in the internal audit reports and reviewed at the ARMC meetings. The relevant Management members were made responsible for ensuring that corrective actions on reported weaknesses were taken within the required timeframes. The Internal Auditors conducted follow-up audits on key engagement to ensure that the corrective actions were implemented appropriately. During the Board meetings, the Chairman of the ARMC briefed the Board on audit matters and the minutes of the ARMC meetings were duly noted by the Board. The cost incurred in outsourcing of the internal audit function to an independent professional firm during the financial year amounted to approximately RM52,000 which included expenses. Audit and Risk Management Committee Report (continued)