ENRA Group Berhad | Annual Report 2022 62 INTERNAL AUDIT FUNCTION The Group’s internal audit (“IA”) function is an integral part of the assurance framework and it is performed in-house. The IA function operates within the framework of the International Professional Practices Framework by the Institute of Internal auditors as stated in its Internal Audit Charter, which is approved by the ARMC. The IA function provides the ARMC with independent opinions of processes, risk exposure and systems of internal control using the Committee of Sponsoring Organization of the Treadway Commission Internal Control – Integrated Framework as a guide. The IA function assess the Group’s Internal Control system according to the following five interrelated control elements: • Control Environment • Risk Assessment • Control Activity • Information & Communication • Monitoring The IA teamwhich is headed by Mr. Melvinder Singh Harminder 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 IA team and ensures that appropriate and prompt remedial action is taken by management. During the financial year, the IA team conducted the audit work as per the 2022 Annual Audit Plan approved by the ARMC on 22 February 2021. 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 IA 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 IA team completed four routine audits, and three follow-up audits. The area of coverage is aligned with the Group’s Risk Management assessment covering Finance, Human Resource, Corporate Governance and Compliance, 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 2022 amounted to RM367,581.80 (2021:RM375,135). This ARMC report is made in accordance with the resolution of the Board of Directors duly passed on 23 June 2022. AUDIT AND RISK MANAGEMENT COMMITTEE REPORT
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