TRAINING During the financial year under review, all the Audit Committee members have attended various seminars, training programmes and conferences. The list of trainings attended is disclosed on the Corporate Governance Overview Statement at page 125 to 127 of the Annual Report. COST OF INTERNAL AUDIT The cost of the internal audit function of the Group for the financial year under review amounted to approximately RM609,780 (2024: RM533,397). This Audit Committee Report has been approved by the Board on 23 December 2025. 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 six (6) staff members, led by Mr. Pregash a/l Balasundaram, an Associate Member of the Institute of Internal Auditors Malaysia (IIA Malaysia) who has over 16 years of experience in internal audit. IAD reports 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. IAD personnel are free from any relationships or conflicts of interest, which could impair their objectivity and independence. 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 the management to address the issues raised, were highlighted by the internal audit function by way of internal audit reports issued to the Audit Committee. The IAD’s work for FY2025 is summarised below: developed an annual audit plan using a risk-based approach and carried out reviews in accordance with the year’s audit plan; provided objective reviews of internal controls to limit risk exposure and assessed adherence to established policies and procedures; recommended improvements and enhancements to the existing system of internal controls and work processes or procedures; and conducted subsequent follow-up work to assess the status of management-agreed action plans on recommendations raised in prior cycles of internal audit, highlighting those issues that had yet to be fully addressed by management, including specific timelines for those outstanding matters to be resolved. AUDIT COMMITTEE REPORT PG | 140 ANNUAL REPORT 2025 MKH BERHAD
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