PRG Holdings Berhad Annual Report 2020

PRG HOLDINGS BERHAD 56 INTERNAL AUDIT FUNCTION (continued) (c) Reviewed the following processes and/or identified key risk areas of the Group’s operations: (continued) (iii) Corporate, Property Development & Construction Divisions and Agriculture Division: (continued) - Risk-based audit on the identified key risk areas of the Construction Division including: (i) Subcontractor and Supplier Risk - Melaka Project (ii) Material Trading Risk - unstable material price (iii) Credit Risk (iv) Change in Interest Rate (v) Enforcement of SOPs - Risk-based audit on the identified key risk areas of the Agriculture Division including: (i) Strategic Risk (ii) Operation Risk (iii) Compliance with government policies and regulations (iv) Cash flow and liquidity risk The internal audit findings arising from the above reviews were reported to Management for response and subsequently tabled for review by the ARMC. Where weaknesses were identified, recommended procedures and/or remedial actions would be put in place to address, improve and strengthen internal controls. In addition, the Internal Auditors also performed follow-up reviews on the status of implementation of the recommended/corrective actions for reporting to the ARMC accordingly. The costs incurred for the internal audit function in respect of the financial year ended 31 December 2020 amounting to RM279,000. Report of The Audit and Risk Management Committee cont’d