5. The internal audit results are communicated with ratings on the overall adequacy and effectiveness of management’s risk management and internal control in relation to the approved internal audit focus (coverage) areas. This rating reflects the internal audit conclusion or opinion. There are also implementation priority ratings for each internal audit findings. This rating communicates the level of urgency that an improvement shall be implemented. 6. Follow-up on internal audit issues identified to ascertain whether agreed corrective action plan has been carried out by the Management and provide updates to the ARMC. During the financial year, the internal auditors carried out internal audit reviews on project management, related party transactions, material cost management and production management, to access the adequacy and integrity of the system of internal control as established by the Management. There were no material weaknesses noted. WEAKNESSES IN INTERNAL CONTROLS WHICH RESULTED IN MATERIAL LOSSES There were no major weaknesses in internal controls which resulted in material losses during the financial year under review until the date of approval of this Statement. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS The external auditors have reviewed this Statement on Risk Management and Internal Control and reported to the Board that nothing has come to their attention that causes them to believe the Statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy and integrity of the Group’s internal control system. This Statement is made in accordance with the resolution of the Board of Directors dated 1 April 2024. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Kimlun Corporation Berhad 068
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