10. R eviewed related party transactions and conflict of interest situation that may arise within the Company or the Group; 11. Reviewed the Company's compliance with the Listing Requirements, applicable Approved Accounting Standards and other relevant legal and regulatory requirements; 12. Reported to the Board on its activities and significant findings and results; and 13. Reviewed the Audit Committee Report and Statement on Risk Management and Internal Control before recommending to the Board for approval and inclusion in the Annual Report. AUDIT COMMITTEE REPORT Terms of Reference The Terms of Reference of the Audit Committee which laid down its duties and responsibilities are accessible via the Company's website at www.destinigroup.com. Internal Audit Function The Group has established its in-house Internal Audit Department since 2004, which reports to the Audit Committee and assists the Audit Committee in reviewing the effectiveness of the internal control and risk management systems within the Group whilst ensuring that there is an appropriate balance of controls and risks throughout the Group in achieving its business objectives. With the internal audit function being put in place, remedial action can be taken in relation to weaknesses identified and noted in the systems and controls of the respective operating units. The setting up of the internal audit function is geared towards increasing efficiency and better management of resources in all aspects of the Group's operations. The scope of internal audit covers the audit of all units and operations, including subsidiaries as stated in the letter of engagement. The Internal Audit Department of the Group has a total of five (5) professional staff and it is led by Mr. Khairul Rizal Bin Osman as the Head of Internal Audit. Mr. Khairul Rizal holds a Bachelors Degree in Business Administration from Universiti Teknologi MARA and a Diploma in Banking Studies from the same university. He is a Certified in Internal Auditing for Financial Institutions (“CIAFIN”), has an Associate Qualification in Islamic Finance (“AQIF”) and a Lead Auditor Intergrated Management System (“IMS”) ISO9001, ISO 14001 & ISO 45001 Exemplar Global Certified. The Internal Audit Department of the Group performs its duties in accordance with standards set by relevant professional bodies, namely Institute of Internal Auditors. The internal auditors monitor and report on the system of internal control. They work on a plan agreed with the Audit Committee and support the Audit Committee in discharging its duties and responsibilities, giving assurance that adequate, efficient and effective internal control systems are in place. The cost incurred for the internal audit function in respect of the financial year is approximately RM312,262.56. During the financial year under review, the following activities were carried out by the internal audit department in discharging its responsibilities. Summary of Activities of the Internal Audit Function: 1. Reviewed the existing systems, controls, procedures and risk assessment of various operating units within the Group; 2. Provided recommendations to assist the various operating units and the Group in accomplishing its internal control and risk management requirements by suggesting improvements to the effectiveness of such control processes; 3. Followed up with management on the implementation of the agreed audit recommendations; and 4. Present the Internal Audit Plan for the year for review and evaluate by the Audit Committee. The Audit Committee and the Board agreed that the internal audit review was done in accordance with the audit plan and the coverage is adequate. GOVERNANCE 75 ANNUAL REPORT 2022 DESTINI BERHAD
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