36 EXCEL FORCE MSC BERHAD INTERNAL AUDIT FUNCTIONS (CONT’D) The internal audits cover the reviewof the adequacy of riskmanagement, operational controls, and compliancewith established procedures, guidelines and statutory requirements. The details of internal audit functions are disclosed in the Statement on Risk Management and Internal Control in this Annual Report. During the financial year under review, the internal auditors reviewed and audited the following areas:- (a) Internal control environment of Sales and Business Development; (b) Internal control environment of Finance and Accounts and Procurement; (c) Internal control environment of Project Management; and (d) Internal control environment of Research and Development and System Design. The fee (inclusive of sales and services tax) paid to the professional firm in respect of internal audit function for the financial year ended 31 December 2021 was RM36,888.00. 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 Audit Committee is of the opinion that the internal audit function is effective and able to function independently. For the financial year ended 31 December 2021, four (4) internal audit reviews had been carried out by Internal Auditors: - Audit Period Reporting Month Name of Entity Audited Audited Areas January 2021 - March 2021 May 2021 Excel Force MSC Berhad • Sales and Business Development April 2021 - June 2021 August 2021 Excel Force MSC Berhad • Finance and Accounts and Procurement July 2021 - September 2021 November 2021 Excel Force MSC Berhad • Project Management October 2021 - December 2021 February 2022 Excel Force MSC Berhad • Research and Development and System Design 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 2021 Excel Force MSC Berhad • Human Resources and Administration functions reported in August 2020. • Customer Services function reported in November 2020. • Management Information Services function reported in February 2021. August 2021 Excel Force MSC Berhad • Customer Services function reported in November 2020. • Management Information Services function reported in February 2021. • Sales and Business Development function reported in May 2021. November 2021 Excel Force MSC Berhad • Sales and Business Development function reported in May 2021. • Finance and Accounts and Procurement reported in August 2021. February 2022 Excel Force MSC Berhad • Project Management function reported in November 2021. 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. Audit Committee Report (cont’d)
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