My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 119 INTERNAL AUDIT FUNCTION (CONT’D) During the FY2020, internal audits were carried out in accordance with the risk based internal audit plan which has been reviewed and approved by the AC. The business processes reviewed were Management Information System BOE & 4FSWJDF $FOUSF PQFSBUJPOT QSPDFTTFT PG UIF (SPVQ 5IF SFTVMUT PG UIF BVEJU SFWJFXT XFSF EJTDVTTFE XJUI 4FOJPS Management and subsequently, the audit findings, including the recommendations for improvement were reported to the AC at the quarterly meetings. Based on the internal audit reviews conducted, none of the weaknesses noted have resulted in any material losses, contingencies or uncertainties that would require separate disclosure in this report. The total costs incurred for the internal audit function for FY2020 was approximately RM30,000. *O BEEJUJPO UIF JOUFSOBM BVEJUPST IBE NFU XJUI "$ PO 'FCSVBSZ +VOF "VHVTU BOE November 2020 with as well as without the presence of executive board members and the management to discuss audit related matters. OTHER KEY ELEMENTS OF INTERNAL CONTROLS The other key elements of the Group’s internal control systems are: (i) Quarterly review of the financial performance of the Group by the AC and the Board. (ii) Clearly defined and structured lines of reporting and responsibility. (iii) Operations review meetings are held to monitor the progress of business operations, deliberate significant issues and formulate corrective measures. (iv) Documented internal policies as set out in a series of memorandums to various departments within the Group. (v) Whistle Blowing Policy which provides an avenue for employees to report suspected malpractices, misconduct or violations of the Company’s policies and regulations in a secured and confidential manner. ASSURANCE The Group Managing Director and Chief Financial Officer have provided assurance to the Board on the adequacy and effectiveness of the Group’s risk management and internal controls, in all material aspects. Taking into consideration the assurance from the management and relevant assurance providers, the Board is of the view that the risk management and internal control practices and processes are operating adequately and effectively to safeguard the shareholders’ investment, customer’s interests, and Group’s assets. CONCLUSION The Board is of the view that the Group’s system of risk management and internal control is adequate to safeguard shareholders’ investments and the Group’s assets. However, the Board is also cognisant of the fact that the Group’s system of internal controls and risk management practices must continuously evolve to meet the changing and challenging business environment. Therefore, the Board will, when necessary, put in place appropriate action plans to further enhance the Group’s system of risk management and internal controls. The Group’s risk management and internal controls systems do not apply to the associate companies. The Group’s interest in the associate companies is served through Board representation and periodic review of the associate companies’ management accounts by Senior Management and the Board. REVIEW BY EXTERNAL AUDITORS "T SFRVJSFE CZ QBSBHSBQI PG UIF ..-3 UIF &YUFSOBM "VEJUPST IBWF SFWJFXFE UIJT 3JTL .BOBHFNFOU BOE *OUFSOBM Control Statement. Their review was performed in accordance with Malaysian Approved Standard on Assurance Engagements, ISAE 3000 (Revised), Assurance Engagement Other than Audits or Reviews of Historical Financial Information and Audit and Assurance Practice Guide 3 (AAPG 3): Guidance for Auditors on Engagements to Report on the Risk Management and Internal Control Statement included in this Annual Report, issued by the Malaysian Institute of Accountants. Based on their review, nothing has come to their attention that causes them to believe that UIJT TUBUFNFOU JT OPU QSFQBSFE JO BMM NBUFSJBM SFTQFDUT JO BDDPSEBODF XJUI UIF EJTDMPTVSFT SFRVJSFE CZ QBSBHSBQI BOE PG UIF 3JTL .BOBHFNFOU BOE *OUFSOBM $POUSPM 4UBUFNFOU (VJEFMJOFT GPS %JSFDUPST PG -JTUFE *TTVFST BOE 1SBDUJDF /PUF BOE PG .BMBZTJBO $PEF PG $PSQPSBUF (PSWFSOBODF UP CF TFU PVU OPS JT GBDUVBMMZ JOBDDVSBUF RISK MANAGEMENT AND INTERNAL CONTROL STATEMENT (CONT’D) GOVERNANCE