AUDIT AND RISK MANAGEMENT COMMITTEE REPORT 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 ARMC, 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 anti-bribery management system, related party transactions, safety and health management and information technology general control. 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 ARMC 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 2023. Kimlun Corporation Berhad | Registration No. 200901023978 (867077-X) 57
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