EXCEL FORCE MSC BERHAD Annual Report 2020

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 36 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (CONT’D) INTERNAL AUDIT FUNCTIONS In accordance with the MCCG, the Group in its efforts to provide an adequate and effective internal control system had appointed Sterling Business Alignment Consulting Sdn Bhd (“Sterling”), an independent consulting firm to review the adequacy and integrity of its system of internal control. Sterling acts as the internal auditors and reports directly to the AC on the quarterly basis. Sterling reviews and addresses critical business processes, identifies risks associated with the internal control gaps, assesses the effectiveness and adequacy of the existing state of internal control of the Group and recommends possible improvements to the internal control process. This is to provide reasonable assurance that such systems continue to operate satisfactorily and effectively within the Group. The Internal Auditors use the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework as a basis for evaluating the effectiveness of the internal control systems. Each quarterly audit is engaged by approximately 2 to 4 audit personnel depending on the areas of the audit. Quarterly audit reports and status reports on follow-up actions were tabled to the AC and Board during its quarterly AC meetings. The Internal Auditors are free from any relationships or conflicts of interest, which could impair their objectivity and independence of the internal audit function. The Internal Auditors do not have any direct operational responsibility or authority over any of the activities audited. The AC is of the opinion that the internal audit function is effective and able to function independently. For the financial year ended 31 December 2020, four (4) internal audit reviews had been carried out by Internal Auditors: - Audit Period Reporting Month Name of Entity Audited Audited Areas January 2020 - March 2020 May 2020 Excel Force MSC Berhad • Gap analysis on Anti-Bribery and Anti- Corruption Framework April 2020 - June 2020 August 2020 Excel Force MSC Berhad • Human Resources and Administration July 2020 - September 2020 November 2020 Excel Force MSC Berhad • Customer Services October 2020 - December 2020 February 2021 Excel Force MSC Berhad • Management Information Services/ Information Technology Follow-up status reviews were also carried out to ensure weaknesses identified have been or are being addressed. During the financial year under review, Sterling presented their follow-up status reports on previously reported audited findings in respect of the following functional scopes of the Group: Reporting Month Name of Entity Functional Scopes May 2020 Excel Force MSC Berhad • Project Management function reported in November 2019. • SystemDesign and Research andDevelopment function reported in February 2020. November 2020 Excel Force MSC Berhad • Human Resources and Administration function reported in August 2020. February 2021 Excel Force MSC Berhad • Human Resources and Administration function reported in August 2020. • Customer Service function reported in November 2020. Based on the internal audit reviews conducted, none of the weaknesses noted have resulted in material losses, contingencies or uncertainties that would require separate disclosure in this Annual Report.