UEM EDGENTA BERHAD Integrated Annual Report 2025 242 INTERNAL AUDIT FUNCTION The Group has established its own internal audit (“IA”) 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 in compliance with the relevant internal rules and regulations. The IAD activities and practices are closely guided by the new Global Internal Audit Standard (GIAS) issued by the Institute of Internal Auditors. In line with the introduction of the new Global Internal Audit Standards (GIAS), the Internal Audit Manual was updated and approved by the AC on 20 November 2025, together with the five-year Internal Audit Strategic Plan. The information on resources, objectivity, and independence of the internal auditors is 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 reviewed and approved the IAD’s manpower requirements to ensure the function is adequately resourced with competent and proficient internal auditors. The total cost incurred for the IA function for financial year ended 31 December 2025 is approximately RM2,012,917, comprising mainly salaries, training and travelling expenses for audit assignments. Summary of Activities The IAD adopted a risk-based audit methodology in developing its annual IA plan. The annual IA plan for FY2025 was approved by the AC on 21 November 2024. In developing the annual IA plan, the IAD had made the necessary assessment and considered all aspects taking into account the Group’s identified risks with focus on auditable areas where the risks would have the most impact on the business objectives of the Group. The main audit coverage proposed for 2025 was on operational efficiencies, digital, technology and innovation, environment, social & governance (“ESG”) and review of RPT/RRPT. The scope of the planned audit assignments for the financial year 2025 covered the following:- 1. Operational Audits Reviews focusing on the efficiency and effectiveness of key business operations and project execution, including facilities management operations, infrastructure projects, hospital concession services, and routine maintenance activities across various regions. 2. Sustainability Assurance Review Internal review of the Group’s Sustainability Statement to assess the accuracy, consistency and reliability of sustainability-related disclosures prior to publication. 3. Compliance and Governance Reviews Periodic reviews of Related Party Transactions and Recurrent Related Party Transactions (RPT/RRPT) to ensure compliance with regulatory requirements, internal policies and Bursa Securities listing obligations. 4. Special Reviews Targeted reviews conducted to address specific risk areas and emerging concerns triggered by Management or request from AC. During the year, AC reviewed and deliberated twelve (12) IA reports in relation to the audits carried out by IAD together with its audit recommendations 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. Where appropriate, the AC directed Management to rectify and improve control and workflow procedures. The AC, at all its quarterly meetings, reviewed the status of all corrective actions aligned with the audit recommendations, to ensure that the key risks and control lapses were addressed in a timely manner. AUDIT COMMITTEE REPORT
RkJQdWJsaXNoZXIy NDgzMzc=