Yinson Annual Report 2019

INTERNAL AUDIT FUNCTION The internal audit function of Yinson Group (“IA Function”) is carried out via a co-sourcing engagement between the inhouse Internal Audit Department (“IAD”) of Yinson Group and EY. The IA Function collectively assists the Audit Committee in discharging its duties and responsibilities and is free from any relationships or conflicts of interest, thus retaining its objectivity and independence. IAD and EY report directly to the Audit Committee on the adequacy and effectiveness of the Group’s internal controls. The Audit Committee is aware of the fact that an independent and adequately resourced IA Function is essential to assist in obtaining the assurance it requires regarding the effectiveness of the system of internal control. The inhouse IAD of Yinson Group is led by Head of IAD, Mr Liew Ching Hin, who joined Yinson Group in 2006 and appointed as Head of IAD on 3 January 2013. He graduated from the University of Adelaide (Australia) with a Bachelor of Finance in 2000 and is an associate member of IIAM. He has 16 years of experience in the field of internal audit. IAD is staffed by 2 audit executives, including the Head of IAD, while the co-sourced team from EY comprised of 2 to 3 persons for each visit conducted with IAD. IAD staff have been provided with relevant training to keep them abreast with the developments in the profession, relevant industry and regulations. The training courses attended by IAD staff during the financial year under review included training provided by IIAM, CPA and inhouse workshops. The IA Function has performed its work in accordance with the principles of the international professional practice framework on internal auditing covering the conduct of the audit planning, execution, documentations, communication of findings and consultation with key stakeholders on audit concerns. During the financial year under review, IA Function carried out audits according to the internal audit plan which had been approved by the Audit Committee. Internal audits were carried out to provide assurance that internal controls are established and operating as intended to achieve effective and efficient operations while adhering to applicable policies, guidelines and procedures. IA Function had conducted independent reviews and risk exposure evaluations relating to the operations, related party transactions and management information system. In performing such reviews, recommendations for improvements and enhancements to the existing internal control system and work processes are made. The Head of IAD and/or EY co-sourced team attended all Audit Committee meetings during the financial year under review while the internal audit reports, incorporating audit recommendations and management’s responses, were issued to the Audit Committee and the management of the respective operations. The Management is responsible for ensuring that corrective actions are taken within the required timeframe and all findings identified by IA Function were tracked and followed up on a quarterly basis with the status of the implementation reported to the Audit Committee accordingly. The internal audit activities carried out in accordance with the approved internal audit plan for FYE 2019 were in the following areas: 1. IT Setup and Cybersecurity Management 2. Project Management 3. FPSOOperations 4. HSSEQ Framework At the Board meetings during the year, the Audit Committee Chairman highlighted key audit issues and overall decisions and resolutions made during the Audit Committee meetings to the Board members. The total cost incurred for maintaining the IA Function for the year under review was approximately RM802,000. This Report on Audit Committee was made in accordance with the approval of the Board on 6 May 2019. Report on Audit Committee Yinson Holdings Berhad ANNUAL REPORT 2019 98