GOVERNANCE AUDIT COMMITTEE REPORT (cont’d) SUMMARY OF ACTIVITIES UNDERTAKEN BY THE AC (CONT’D) Internal Audit h) the internal audit reports which outlined the recommendations towards correcting areas of weaknesses and ensure that there were management action plans established for the implementation of the internal auditors’ recommendation. i) The internal audit plan prepared by the outsourced internal auditors to ensure there is adequate scope and comprehensive coverage over the activities in the Group and that all the risk areas are audited annually. j) the scope, function, resources and effectiveness of the internal auditors to ensure they have discharged their functions and responsibilities effectively. Related Party Transactions k) the related party transactions entered into by the Group to ensure that they were not detrimental to the interests of minority shareholders. Others l) the Terms of Reference of AC to ensure that most of the good practices recommended in the MCCG have been implemented by the Company. m) complaints / cases reported in relation to the Whistle Blowing policy. n) Completed the annual evaluation for AC Members’ Self and Peer Evaluation form. TRAINING AND EDUCATION During the financial year, the AC members attended individually or collectively seminar(s), conference(s) and/ or training(s) to continuously upgrade their skills and to keep abreast of current developments to enhance their knowledge and enable them to discharge their duties more effectively. INTERNAL AUDIT FUNCTION The internal audit function is designed to evaluate and enhance the Group’s risk management, controls, and governance processes, using a risk-based approach to assist Senior Management in achieving corporate goals. For FY2022, the internal audit function was outsourced to an independent internal audit professional firm, Vaersa, which reports directly to the AC and assists the Board in monitoring and managing risks and internal controls. The AC is satisfied that Vaersa’s independence have been maintained and they have sufficient resources and access to information to perform their duties effectively. Vaersa conducted internal audit reviews in accordance with the approved internal audit plan, which covered the adequacy and effectiveness of operational controls in mitigating risks, compliance with established policies and procedures, authority limits, and applicable laws. Vaersa formally reported the results of the reviews to the AC and Senior Management took note of the findings and acted upon their recommendations. The internal audit reviews did not reveal any significant weaknesses and consequential provides reasonable assurance of the effectiveness of the Group’s internal control systems and the system adequacy to mitigate business risks and safeguard the Group’s assets and resources. The total cost incurred for the internal audit function for the financial year under review was approximately RM40,000. Further details of the internal audit function are set out in the Risk Management and Internal Control Statement on page 137. 135
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