Yinson Annual Report 2020

177 Annual Report 2020 e) Other matters • Prepared Report on AC for the Board which includes the composition of the AC, the reference to its terms of reference, number of meetings held, a summary of its works and a summary of the works of the internal audit function for inclusion in the Annual Report; • Verified criteria for allocation of share options to eligible employees for FYE 2019 under ESS; • Reviewed and monitored the Recurrent Related Party Transactions; and • Reviewed and recommended the dividend pay out. INTERNAL AUDIT FUNCTION The internal audit function of Yinson Group (“IA Function”) is carried out via a co-sourcing engagement between the in-house Internal Audit Department (“IAD”) of Yinson Group and EY. The IA Function assists the AC in 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 AC on the adequacy and effectiveness of the Group’s internal controls. The AC is aware that an independent and adequately resourced IA Function is essential to obtaining assurance on the effectiveness of the system of internal control. The in-house IAD of Yinson Group is led by Head of IAD, Mr Liew Ching Hin, who joined Yinson Group in 2006 and was 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 17 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 comprises 2 to 3 persons for each visit conducted with IAD. IAD staff have been provided with relevant training to keep them abreast of developments in the profession, relevant industry and regulations. The training courses attended by IAD staff during the financial year in review included training provided by IIAM, CPA and in-house workshops. The IA Function performs 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. In FYE 2020, the Internal Audit Charter was revised and subsequently approved by the AC. The IA Function carried out audits according to the internal audit plan which had been approved by the AC. 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. The IA Function had conducted independent reviews and risk exposure evaluations relating to the operations 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 AC meetings during the financial year under review while the internal audit reports, incorporating audit recommendations and Management’s responses, were issued to the AC and Management of the respective operations. 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 AC accordingly.