STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Based on the above Risk Management Framework adopted and approved by the Board of Directors, the Risk Management Committee have delegated the responsibilities of identifying Key Risks of the Group to the respective “Risk Management Business Units” and “Risk Owners” whereby the “Risk Owners” are required to report the Key Risks of the Group with proposed action plans to the Risk Management Committee for review and consideration. The Key Risks of the Group with proposed action plans have been updated and presented to the Risk Management Committee in its meetings periodically. Organisation Structure The Board has established an Organisation Structure of the Group, with clear lines of job scope and responsibilities for each department and division to administer and actively oversee the daily operations of the Group. The Organisation Structure plays a vital role in acting out the Board’s expectations through active participation in the operations of the business. Management meetings with the Heads of all departments and business units are held once a month, led by the Group Managing Director to discuss the progress of each project and other operational issues that require immediate attention of the Board. Audit Committee The Audit Committee was established with a view to assist and to provide the Board with added focus in discharging the Board’s duties. The primary objectives of the Audit Committee are to provide assistance to the Board in fulfilling its fiduciary responsibilities relating to the corporate accounting and practice of the Group and to improve the Group’s business efficiency, the quality of the accounting function, the system of internal control and audit function and strengthen the confidence of the public in the Group’s reported results. The Audit Committee also ensures that there are continuous efforts by the Management to address and resolve areas with control weaknesses. Internal Audit During the financial year ended 31 March 2023, Internal Audit function of the Group has been undertaken via an in-house Internal Audit team led by Encik Nik Li R Deraman (Head of Internal Audit) together with an independent, external consulting firm, namely Wensen Consulting Asia (M) Sdn Bhd (collectively known as “Internal Auditors”) to assist the Audit Committee and the Board primarily in formalising the Internal Audit Plan based on the established risk profile of the Group. The Head of Internal Audit graduated with a Bachelor’s Degree in Accounting (Hons) from University Utara Malaysia (“UUM”), is a Chartered member of The Institute of Internal Auditors Malaysia and Malaysian Institute of Accountants. The in-house Internal Audit team comprises the Head of Internal Audit supported by two (2) executives whereas Wensen Consulting Asia (M) Services Sdn Bhd assigned at least two (2) executives during each audit assignment, thus providing overall support and back up to the entire Internal Audit team. The Internal Auditors do not have any relationship with the directors and/or major shareholders of Matrix and they have assured that they are free from any conflict of interest or relationships that could impair their objectivity and independence. The Internal Auditors carries out continuous internal control reviews on the business processes based on the approved Internal Audit Plan and reports to the Audit Committee on a quarterly basis. All findings including the recommendations for further improvement will be presented independently by the Internal Auditors to the Audit Committee subsequent to discussions with the Management on a quarterly basis. The independent monitoring, review and reporting arrangements undertaken by the Internal Auditors give reasonable assurance that the structure of internal controls and business processes are appropriate to the Group’s operations so as to properly manage the principal risks to an acceptable level throughout the Group’s businesses. Internal control weaknesses are identified and duly addressed either immediately or progressively. External Auditors The Group employs Messrs. Crowe Malaysia PLT as its External Auditors. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 124 OUR GOVERNANCE
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