Tropicana Corporation Berhad Annual Report 2019

The audit approach and objectives are based on the guidance of the Institute of Internal Auditors’ International Professional Practices Framework (“ IPPF ”) and the Committee of Sponsoring Organisations of the Treadway Commission (“ COSO ”) Internal Control – Integrated Framework. Reference is made to the frameworks in assessing and reporting on the adequacy and effectiveness of the internal control, governance and risk management. Activities • Reviewed and tested the system of internal controls on key operating processes based on the approved internal audit plan using a risk-based approach, and progressively issuing detailed internal audit reports to the Audit Committee. During FY2019, fifteen (15) internal audit reports which incorporates key control issues, significant risks, recommendations to improve on matters raised during the course of the audits and managements comments and remedial actions were issued. These internal audit reports together with follow up reports were tabled at the quarterly Audit Committee meetings for deliberation. None of the audit findings have resulted in any material losses, contingencies or uncertainties that would require disclosure in the Company’s Annual Report. • Prepared the annual audit plan for deliberation and approval by the Audit Committee. • Conducted follow up reviews on a quarterly basis to determine the adequacy, effectiveness and timeliness of implementation of remedial actions by Management. • Reviewed recurring related party transactions on a quarterly basis on the adequacy, appropriateness and compliance of existing established procedures on monitoring of recurrent related party transactions. Resources and Continuous Development There are nine (9) internal auditors in the Group including the Head of Internal Audit with professional qualifications and are members of The Institute of Internal Auditors Malaysia. All internal audit staff are encouraged to continuously enhance their knowledge, skills and competencies through relevant professional courses, seminars, training courses and on-the-job- training. None of the internal audit personnel has any relationships or conflict of interest that could impair their objectivity and independence in conducting their internal audit functions. The total costs incurred for the internal audit function of the Group for FY2019 was RM1,002,023 (2018: RM819,000). The Audit Committee Report is made in accordance with a resolution of the Board dated 10 June 2020. Tropicana Corporation Berhad Annual Report 2019 pg 101 Sustainability at Tropicana What We’ve Governed Financial Statements & Other Information