70 CORPORATE GOVERNANCE ENRA GROUP BERHAD ANNUAL REPORT 2023 GROUP INTERNAL AUDIT FUNCTION The ARMSC is supported by an independent in-house Group’s Internal Audit (IA) in the discharge of its duties and responsibilities. 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 ARMSC. The IA function provides the ARMSC with independent opinions of processes, risk exposure and systems of internal control using the “Committee of Sponsoring Organization of the Treadway Commission’s 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 team which 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 ARMSC on a quarterly basis. The ARMSC 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 prepared and presented an annual audit review schedule to the ARMSC. This annual schedule outlines the key business processes of the Group’s governance process, ESG efforts and policy, property development subsidiaries as well as oil & gas services. The ARMSC had 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. The Internal Audit team completed a holistic Corporate Governance Review of EGB with reference to the MCCG 2021, an ESG Gap analysis, data gathering and drafting the ESG policy using the MMLR as a guideline, a routine audit of the property division and two follow-up audits in accordance with the ARMSC’s approved annual review schedule. 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 2023 amounted to RM411,854.60. (2022: RM367,581.80) This ARMSC report is made in accordance with the resolution of the Board duly passed on 21 June 2023. Audit, Risk Management and Sustainability Committee Report (Cont’d)
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