(c) Reviewed and deliberated on the audit findings in the internal audit reports tabled during the year, the audit recommendations made and Management’s responses and/or actions taken to these recommendations. The AC briefed the Board on audit findings, sought clarifications from the Executive Directors on internal control matters and provided its views and recommendations on areas where improvements could be made; (d) Reviewed the results of follow-up audits conducted by the internal auditors on the Management’s implementation of audit recommendations to ensure that all key risks and internal control weaknesses are properly addressed. (4) Related Party Transactions (a) Reviewed related party transactions (“RPTs”) on a quarterly basis and also the internal audit report on RPTs to ascertain that the review procedures established to monitor the RPTs have been complied with. The Management presented the RPTs reports detailing the parties to the RPTs, the nature and quantum of the RPTs to the AC quarterly for their review; (b) Reviewed the 2021 Circular to Shareholders in relation to the renewal of shareholders’ mandate for Recurrent RPT, prior to its recommendation to the Board of Directors for approval. (5) Annual Report and Corporate Governance (a) Reviewed the application of corporate governance principles and the extent of the Group’s compliance with the best practices set out under the Malaysian Code on Corporate Governance updated and issued by the Securities Commission Malaysia on 28 April 2021 (“MCCG”). In discharging its duty, the AC obtained the advice of the Company Secretary on MCCG, and discussed with the Executive Directors on the application of the best practices set out under the MCCG; (b) Reviewed the following statements/reports and recommended the same to the Board for inclusion in the Annual Report: (i) General Sustainability Statement; (ii) Corporate Governance Overview Statement; (iii) Corporate Governance Report; (iv) Statement on Risk Management and Internal Control; and (v) Audit Committee Report. (6) Risk Management Discussed with the Board of Directors, the material key risks affecting the Group, the mitigation plans and strategies implemented by Management and the residual risk scores of these risks. SUMMARY OF ACTIVITIES OF INTERNAL AUDIT FUNCTION The Company has outsourced its internal audit function to Tricor Axcelasia Sdn. Bhd., a professional services firm. The internal audit function has been mandated to continually assess and monitor the Group’s system of internal control. During the financial year, the internal auditors carried out internal audit reviews 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 AC, was essentially based on the risk profiles of individual business units 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. Among the scope of coverage during the financial year were post-mortem review of project, related party transactions, safety and health management and production management. The internal audit reports (“IA Reports”) with details on audit scope and methodology, process flow, critical process risks and relevant control activities, audit findings, areas of concern that require improvements, and audit recommendations were presented to the AC for its review and deliberation. The results of the audits in the IA Reports and the recommended corrective actions on reported weaknesses to be undertaken by the relevant Management team members within the required timeframes would be discussed at the Board meetings. The IA Reports were also forwarded to the Management for the necessary corrective actions. The internal auditors also conducted follow-up audits on key engagements to ensure that the corrective actions were implemented appropriately. This statement is made in accordance with the resolution of the Board of Directors dated 30 March 2022. AUDIT COMMITTEE REPORT K imlun Corporat ion Berhad Regi s t rat ion No. 200901023978 (867077-X) 53
RkJQdWJsaXNoZXIy NDgzMzc=