ENRA Group Berhad | Annual Report 2022 61 AUDIT AND RISK MANAGEMENT COMMITTEE REPORT SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR (Cont’d) Internal Audit a. Approved the Internal Audit Plan for financial year ending 31 March 2023. The Audit Plan was developed using a risk-based audit methodology where entities and processes were selected for audit based on risk assessments carried out periodically by the Internal Auditors. b. Reviewed the adequacy of the Internal Audit department’s resource requirements, programmes and the annual assessment of the Internal Audit department’s competency, performance and staff composition. The ARMC had also met with the head of Internal Audit without the presence of the Executive Directors and Management to ensure there were no restrictions on the scope of IA’s audit. The head of Internal Audit were given the opportunity to raise any matters of concern arising from their IA’s work. c. Reviewed and deliberated the internal audit reports that highlighted audit issues, major findings, audit recommendations and Management’s responses. The ARMC also reviewed the status of implementation of corrective actions taken by Management to ensure appropriate remedial actions were taken on a timely basis to address all areas of risk and internal control issues. Risk Management a. Recommended to the Board, improvements in internal control procedures and risk management. The Chairman of the Executive Risk Management Committee (“ERMC”) updated the ARMC quarterly on the risk profiles and risk management of the Group. b. Reviewed the effectiveness of the risk management system and the risk assessment reports from the ERMC. Significant risk issues were summarized and communicated to the Board for consolidation and resolution. Compliance and others a. Reviewed the related party transaction and recurrent related party transactions of revenue or trading nature entered into by the Group. b. Reviewed the Corporate Governance Overview Statement, Audit and Risk Management Committee Report, Statement on Risk Management and Internal Control and Sustainability Report, pursuant to the MMLR and the MCCG 2021 and recommended the same to the Board for approval. c. Reviewed the half-yearly report on the status of compliance of the Group’s Code of Business Conduct to ensure any non-compliance is properly investigated. d. Received quarterly reports on whistleblowing issues to ensure actions were taken on any cases reported. No whistleblowing cases were reported during the financial year under review. e. Reviewed and considered the proposed divestment of ENRA Kimia group to ensure the divestment was in the best interest of the Company, fair, reasonable and on normal commercial terms, and not detrimental to the interest of the minority shareholders of the Company. f. Reviewed the revised TOR of the ARMC incorporating the new amendments to the MCCG 2021 and MMLR and recommended the same to the Board for approval.
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