INTERNAL AUDIT FUNCTION The Group has established its own IAD functions to provide independent and objective assurance to the AC and the Board that the established internal controls, risk management, and governance processes are adequate and operating effectively and efficiently as well as complied with the relevant internal rules and regulations. The IAD activities and practices are closely guided by the International Professional Practice Framework (“IPPF”) on Internal Auditing issued by the Institute of Internal Auditors (“IIA”). The information on the resources, objectivity, and independence of the internal auditors are provided in the Corporate Governance Report in accordance with Practice 11.2 of the Malaysian Code on Corporate Governance issued by the Securities Commission Malaysia in 2021. The AC reviews and approves the IAD’s manpower requirements to ensure the function is adequately resourced with competent and proficient internal auditors. The total cost incurred for the internal audit function for financial year ended 31 December 2024 is approximately RM2,090,000, comprising mainly salaries, training, and travelling expenses for audit assignments. SUMMARY OF ACTIVITIES The IAD implements a risk-based audit methodology in establishing its annual audit plan. The audit plan 2024 was approved by the AC on 20 November 2023 and the revised audit plan 2024 was subsequently approved on 18 March 2024, due to Special/Ad-hoc Reviews requested by the AC and/or Senior Management. The audit plan had considered the Group’s identified risks and focused on auditable areas where the risks would have the most impact on the business objectives of the Group. Among the focus areas are cost escalation risks, process efficiency, business strategy and execution, information security risks, and Environmental, Social and Governance risks. The scope of the planned audit assignments for the financial year 2024 covered the following:- 1 Procurement audits in Infrastructure Services and Property & Facility Solutions divisions; 2 Operational audits in Healthcare, Infrastructure Services and Property & Facility Solutions divisions; 3 Contract Management for Healthcare Commercial – UEMS Singapore office; 4 Environmental, Sustainability and Governance audit for Sustainability Statement Assurance Review; 5 Quarterly review on Related Party Transactions/Recurrent Related Party Transactions; and 6 Special review as and when requested by Management or AC. During the year, AC reviewed and deliberated a total of fourteen (14) internal audit reports in relation to the audits carried out, together with the audit recommendations made by IAD and the Management Responses to those recommendations. The Head of IA attended all the planned AC meetings during the year to brief the AC on audit results and significant matters raised in the detailed IAD reports. The Heads of Divisions, where required, were also invited to the AC Meeting to provide further explanations on the audit observations highlighted. Where appropriate, the AC directed Management to rectify and improve control and workflow procedures. The AC, at all its quarterly meetings, also reviewed the implementation status of the corrective actions arising from the audit recommendations to ensure that the key risks and control lapses were addressed in a timely manner. Audit Committee Report UEM EDGENTA BERHAD 244 Integrated Annual Report 2024
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