MKH Annual Report 2019

066 A N N U A L R E P O R T 2 0 1 9 AUDIT COMMITTEE REPORT Training During the year, all the Audit Committee have attended various seminars, training programmes and conferences. The list of trainings attended is disclosed on the Corporate Governance Overview Statement at page 56 of the Annual Report. The Internal Audit Function And Its Role The Company has set-up an in-house Internal Audit Department (“IAD”) effective 1 October 2016. The IAD comprises four (4) staff members, led by Mr. Kannan A/L Sevakrishnavelu, an Associate Member of the Institute of Internal Auditors Malaysia (“IIA Malaysia”) who has over 13 years of experience in internal audit. IAD report directly to the Audit Committee and is guided by its Internal Audit Charter. The IAD adopts the International Standards for the Professional Practice of Internal Auditing as well as established internal auditing guidelines to enhance its competency and proficiency. The principal role of the internal audit function is to undertake, on a prioritised approach, an independent and systematic assessment of the Group’s system of risk management and internal controls as established by management in addressing the principal business risks faced by the Group. In conducting internal audit of the Group, the internal audit function deployed professional standards promulgated by the IIA Malaysia. During the financial year under review, weaknesses noted in the said system and areas that required improvement, including the recommendations thereof and action plans agreed to be deployed by management to address the issues raised, were highlighted by the internal audit function by way of internal audit reports issued to the Audit Committee. (a) Internal Audit Work Carried Out During The Financial Year Under Review The internal audit function conducted its work based on an annual internal audit plan which was tabled before and approved by, the Audit Committee. The main activities of work carried out by the internal audit function are set out below: (i) Conduct Of Internal Audit The internal audit function adopted a risk-based approach in identifying specific areas and processes to be covered. During the financial year under review, the internal audit function focused on selected key processes of the Group’s as follows:- Entity Key Processes Laju Jaya Sdn. Bhd. • Revenue cycle - Prescott Hotel Kajang • Sales and marketing • Cost efficiency • Housekeeping • Purchasing • Store management • Repair and maintenance • Customers complaint