116 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) INTERNAL AUDIT FUNCTION In line with Paragraph 15.27 of MMLR, the Group has outsourced its internal audit function to an independent professional firm, Baker Tilly Malaysia to assist the Board and ARMC in conducting independent assessments on the adequacy, efficiency and effectiveness of the Group’s risk management and internal control system. The outsourced Internal Auditors is led by Mr. Kuan Yew Choong, who is a Professional Member of the Institute of Internal Auditors Malaysia and has two decades of experience in the field of internal auditing and is equipped with the knowledge and expertise in the realm of risk management, internal controls and governance practices. He also possesses full professional certification from the Association of Chartered Certified Accountants (“ACCA”). Mr. Kuan is the Partner of Internal Audit & Risk Advisory at Baker Tilly Malaysia. Mr.Kuan is supported by a team of up to three (3) internal audit personnel to carry out the internal audit engagement of the Group during the financial year based on the approved internal audit plan. The total cost incurred for the Group’s internal audit function in respect of FYE 2024 amounted to RM75,000. During the FYE 2024, the Internal Auditors have performed the following internal audit reviews in accordance with the duly approved Internal Audit Plan: - Internal Audit Scope Adequate Procedures for Anti-Bribery and Corruption on the Group Procurement to Payment Management on Keyfield Offshore Sdn Bhd Chartering to Accounts Receivables Management on the Group During the audit engagements, the ARMC has provided full and unrestricted access to all information and resources in the Group to the Internal Auditors to ensure an effective conduct of audit process. Functionally, the Internal Auditors report directly to the ARMC. As per the approved Internal Audit Plan, upon conclusion of audit engagements, the Internal Auditors will present the Internal Audit Reports covering internal audit findings noted during the audit review, together with the corresponding root-cause analysis and recommendations, to the ARMC for their perusal and deliberation in FYE 2024. The Management will then be tasked with the responsibility to implement the necessary corrective actions to address the internal control weaknesses identified. Follow-up reviews on the audit findings will also be subsequently carried out by the Internal Auditors to ensure that all recommendations and appropriate actions have been implemented within the stipulated timeframe. Based on the internal audit reviews conducted by the Internal Auditors, the Board is satisfied that there were no significant weaknesses noted in the internal control system that may arise with material impact and would require separate disclosure in this Annual Report. REVIEW OF THE STATEMENT BY THE EXTERNAL AUDITORS Their review was performed in accordance with Malaysia Approved Standard on Assurance Engagements, ISAE 3000 (Revised): Assurance Engagements Other than Audits or Reviews of Historical Financial Information and the Audit and Assurance Practice Guide (“AAPG”) 3: Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in Annual Report issued by the MIA. AAPG 3 does not require the External Auditors to form an opinion on the adequacy and effectiveness of the risk management and internal control systems of the Group. Based on their review, nothing has come to their attention that causes them to believe that this statement is not prepared, in all material respects, in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers to be set out, nor is factually inaccurate. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (cont’d)
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