ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 47 AUDIT AND RISK MANAGEMENT COMMITTEE REPORT INTERNAL AUDIT FUNCTION (Cont’d) The internal audit team which is headed by Mr. Melvinder Singh, who is a Chartered Member of the Institute of Internal Auditors Malaysia with more than 20 years of experience in internal auditing with the assistance of a team, independently reviews the key business processes, and reports to the ARMC on a quarterly basis. The ARMC reviews and evaluates the key audit issues raised by the internal audit function and ensures that appropriate and prompt remedial action is taken by management. During the financial year, the internal audit team prepared and presented an annual audit review schedule to the ARMC within the limit set by the ARMC for the financial year. This annual schedule outlines the governance, risk and controls of the key business processes of the Group’s property development subsidiaries as well as oil and gas services subsidiaries activity. The ARMC reviewed and approved the schedule providing the internal audit team with the mandate in assessing the adequacy and effectiveness of the Group’s internal control system. In line with the approved annual review schedule by the ARMC, the internal audit team completed three routine audits, two study and progress reports, and two follow-up audits. The area of coverage is aligned with the Group’s Risk Management assessment covering Finance, Human Resource, Operations, Procurement, Inventory, General IT, Sales, Marketing, Fraud Assessment and Project Management. The costs incurred for the internal audit function in respect of the financial year ended 31 March 2020 amounted to RM317,000 (2019:RM388,335). This ARMC report is made in accordance with the resolution of the Board of Directors duly passed on 27 July 2020.