ENRA Group Berhad | Annual Report 2022 67 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL INTERNAL AUDIT FUNCTION (Cont’d) The Internal Audit team is headed by Mr. Melvinder Singh Harminder Singh, Group Head of Compliance & Governance, who is a Chartered Member of the Institute of Internal Auditors Malaysia with more than 20 years of experience in internal auditing. Mr. Melvinder and his 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 the Management. During the financial year ended 31 March 2022, the Internal Audit function prepared and presented an annual audit review schedule to the ARMC. This annual schedule outlines the key business processes of the Group’s governance process, head office departments, property development subsidiaries as well as oil & gas services. The ARMC had 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 four routine audits, 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. CONTROL ENVIRONMENT AND STRUCTURE Apart from the above, the other key elements of the Group’s internal control system include: CONTROL ACTIVITIES AUTHORITY MONITORING ETHICS & COMPLIANCE a. Policies, procedures and limits of authority make up the Control Activities and Authority. • Formally documented internal policies, standards and procedures are in place and periodically updated to reflect and enhance operational efficiency. Cases of non-compliance with policies and procedures are reported to the ARMC. • Formally defined delegation of responsibilities to committees of the Board and to Management including organisation structures and appropriate authority levels.
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