Bank Islam Integrated Annual Report 2020

Internal Audit External Audit Financial Reporting Other Activities ĄljʤȈljʥljǁ ƃȶǁ ƃɥɥɨɁʤljǁ ɽȃlj ѵѳѵѴ ŽȶɽljɨȶƃȢ ʍǁȈɽ ĀȢƃȶ and Budget which includes the scope, procedures and frequency as well as adequacy and competency of internal audit resources. AljȢȈƹljɨƃɽljǁ Ɂȶ ɽȃlj ŽȶɽljɨȶƃȢ ʍǁȈɽ ĄljɥɁɨɽɰ Ɂȶ ɽȃlj ‰ljƃǁ ÝǹǹȈƺljӗ ĄljǼȈɁȶƃȢ ÝǹǹȈƺljɰӗ ɽȃlj ƹɨƃȶƺȃljɰ ƃȶǁ ȈǁljȶɽȈǹȈljǁ critical units of Bank Islam, which amongst others focused on the effectiveness and adequacy of governance, risk management and internal control, audit rating and recommendations. AljȢȈƹljɨƃɽljǁ ɽȃlj ŽȶɽljɨȶƃȢ ʍǁȈɽ ĄljɥɁɨɽɰ Ɂȶ ŽȶǹɁɨȴƃɽȈɁȶ ěljƺȃȶɁȢɁǼʰ ʍǁȈɽ ʥȃȈƺȃ ƃɰɰljɰɰljǁ ɽȃlj ƃǁljɧʍƃƺʰ Ɂǹ ɽȃlj information system controls, security and the necessary back-up systems to cover for contingencies or disaster. AljȢȈƹljɨƃɽljǁ ɽȃlj ČȃƃɨȈƃȃ ʍǁȈɽ ĄljɥɁɨɽɰ Ɂȶ ƺɁȴɥȢȈƃȶƺlj with the Shariah rulings. ĄljʤȈljʥljǁ ɽȃlj ɥɨɁǼɨljɰɰ Ɂǹ ɨljƺɽȈǹȈƺƃɽȈɁȶ ljǹǹɁɨɽ Ɂȶ ʍȶɨljɰɁȢʤljǁ audit findings to ensure appropriate corrective actions were taken by Management in a timely manner to address control weaknesses, policies and other areas ȈǁljȶɽȈǹȈljǁ ƹʰ ɽȃlj ŽȶɽljɨȶƃȢ ʍǁȈɽɁɨɰ ƃȶǁ Ɂɽȃljɨ ƺɁȶɽɨɁȢ functions. ĄljʤȈljʥljǁ ɽȃlj ʍɥǁƃɽljɰ ƹʰ ɽȃlj ŽȶɽljɨȶƃȢ ʍǁȈɽ Ɂȶ ɽȃlj ɰɽƃɽlj of internal controls for the first half of the financial year ѵѳѵѳӝ ĄljʤȈljʥljǁ ɽȃlj ɥljɨǹɁɨȴƃȶƺlj ƃȶǁ ƃƺȃȈljʤljȴljȶɽɰ Ɂǹ ɽȃlj ŽȶɽljɨȶƃȢ ʍǁȈɽ AȈʤȈɰȈɁȶ ǹɁɨ ɽȃlj ǹȈȶƃȶƺȈƃȢ ʰljƃɨ ѵѳѴѼ ƃȶǁ ɽȃlj ǹȈɨɰɽ ȃƃȢǹ ѵѳѵѳӝ ĄljʤȈljʥljǁ ƃȶǁ ȶɁɽljǁ ɽȃlj ȈȶʤljɰɽȈǼƃɽȈɁȶ ɨljɥɁɨɽɰ ƹʰ ŽȶɽljɨȶƃȢ ʍǁȈɽ AȈʤȈɰȈɁȶӝ ĄljʤȈljʥljǁ ƃȶǁ ȶɁɽljǁ ɽȃlj ȴȈȶʍɽljɰ Ɂǹ ȴljljɽȈȶǼ Ɂǹ ɽȃlj ÃƃȶƃǼljȴljȶɽ ʍǁȈɽ :ɁȴȴȈɽɽljljӝ ĄljʤȈljʥljǁ ƃȶǁ ǁljȢȈƹljɨƃɽljǁ ɽȃlj ljʯɽljɨȶƃȢ ƃʍǁȈɽɁɨԇɰ ѵѳѵѳ ƃʍǁȈɽ ɥȢƃȶ encompassing the audit approach, the areas of audit emphasis and audit fees. ĄljʤȈljʥljǁ ƃȶǁ ǁljȢȈƹljɨƃɽljǁ ɽȃlj KʯɽljɨȶƃȢ ʍǁȈɽɁɨɰ ɨljɥɁɨɽɰ ɁȶӖ (i) the audited financial statements for the financial year ended ѶѴ Aljƺljȴƹljɨ ѵѳѴѼӗ ʥȃȈƺȃ ȈȶƺȢʍǁlj ɽȃlj ȟljʰ ǹɁƺʍɰ ƃɨljƃ Ɂǹ ɽȃlj ƃʍǁȈɽӗ Ɂȶ ѵѶ °ƃȶʍƃɨʰ ѵѳѵѳӢ ƃȶǁ (ii) limited review of the unaudited financial statements for the ɰȈʯӸȴɁȶɽȃɰ ǹȈȶƃȶƺȈƃȢ ɥljɨȈɁǁ ljȶǁljǁ Ѷѳ °ʍȶlj ѵѳѵѳӗ Ɂȶ ѵѵ °ʍȢʰ ѵѳѵѳӝ Evaluated the independence and objectivity of the external auditor by reviewing the fees and the list of non-audit services provided by the external auditor. ĄljʤȈljʥljǁ ƃȶǁ ɨljƺɁȴȴljȶǁljǁ ɽɁ ɽȃlj 9Ɂƃɨǁ ɽȃlj ɨljӸƃɥɥɁȈȶɽȴljȶɽ Ɂǹ ljʯɽljɨȶƃȢ ƃʍǁȈɽɁɨӝ ěȃlj 9 K: ljʤƃȢʍƃɽljǁ ƹƃɰljǁ Ɂȶ ɽȃlj ɥljɨǹɁɨȴƃȶƺljӗ independence and suitability of the external auditors. ĄljʤȈljʥljǁ ƃȶǁ ɨljƺɁȴȴljȶǁljǁ ɽɁ ɽȃlj 9Ɂƃɨǁ ɽȃlj ƃʍǁȈɽljǁ ǹȈȶƃȶƺȈƃȢ ɰɽƃɽljȴljȶɽɰ ǹɁɨ ɽȃlj ǹȈȶƃȶƺȈƃȢ ʰljƃɨ ljȶǁljǁ ѶѴ Aljƺljȴƹljɨ ѵѳѴѼӝ ĄljʤȈljʥljǁ ɽȃlj ʍȶƃʍǁȈɽljǁ ɧʍƃɨɽljɨȢʰ ƃȶǁ ȃƃȢǹ ʰljƃɨȢʰ ǹȈȶƃȶƺȈƃȢ ɨljɰʍȢɽ Ɂǹ Bank Islam Group. ĄljƺɁȴȴljȶǁljǁ ɽɁ ɽȃlj 9Ɂƃɨǁ ɽȃlj ɥɨɁɥɁɰljǁ ǹȈȶƃȢ ɰȈȶǼȢlj ɽȈljɨ ǁȈʤȈǁljȶǁ ǹɁɨ ɽȃlj ǹȈȶƃȶƺȈƃȢ ʰljƃɨ ljȶǁljǁ ѶѴ Aljƺljȴƹljɨ ѵѳѴѼ ƃȶǁ ȈȶɽljɨȈȴ ɰȈȶǼȢlj ɽȈljɨ ǁȈʤȈǁljȶǁ ǹɁɨ ɽȃlj ɰȈʯӸȴɁȶɽȃɰ ǹȈȶƃȶƺȈƃȢ ɥljɨȈɁǁ ljȶǁljǁ Ѷѳ °ʍȶlj ѵѳѵѳӗ ʍɥɁȶ ƹljȈȶǼ ɰƃɽȈɰǹȈljǁ ʥȈɽȃ ɽȃlj ɰɁȢʤljȶƺʰ ɽljɰɽӝ AljȢȈƹljɨƃɽljǁ ɽȃlj ŽȶɽljǼɨȈɽʰ ծ {Ɂʤljɨȶƃȶƺlj ĄljɥɁɨɽɰӗ ʥȃȈƺȃ ȈȶƺȢʍǁlj ɨljɥɁɨɽ on the investigation on whistleblowing cases. AljȢȈƹljɨƃɽljǁ ɽȃlj :ɨljǁȈɽ ÃɁȶȈɽɁɨȈȶǼ ĩȶȈɽ ɥɨɁǼɨljɰɰ ɨljɥɁɨɽɰ Ɂȶ ɽȃlj ƺɨljǁȈɽ reviews. 9 K: ƺɽȈʤȈɽȈljɰ Ȉȶ ѵѳѵѳ SECTION B: BOARD COMMITTEES ěȃlj 9Ɂƃɨǁ :ɁȴȴȈɽɽljljɰԇ ѵѳѵѳ ƺɽȈʤȈɽȈljɰ Board Audit & Examination Committee (BAEC) ǍƃǒȦdzƃǵ • Noraini Che Dan rƭdzƞƭȦȮ • Zahari @ Mohd Zin Idris • Mohamed Ridza Mohamed Abdulla • Dato’ Sri Khazali Ahmad • Mohd Yuzaidi Mohd Yusoff ӯƃɥɥɁȈȶɽljǁ ʥӝljӝǹӝ Ѹ Ãƃɨƺȃ ѵѳѵѳӰ FȀȦdzƭȦ rƭdzƞƭȦ ɛǍȀ ȮƭȦɚƭƦ ǒǵ ҜҚҜҚ • Datuk Zamani Abdul Ghani ӯɨljɽȈɨljǁ ʥӝljӝǹӝ Ѵ Ãƃɨƺȃ ѵѳѵѳӰ Roles and Responsibilities ɰɰȈɰɽɰ ɽȃlj 9Ɂƃɨǁ Ȉȶ ljȶɰʍɨȈȶǼ ɽȃƃɽ ƃ ɨljȢȈƃƹȢlj ƃȶǁ ɽɨƃȶɰɥƃɨljȶɽ ǹȈȶƃȶƺȈƃȢ ɨljɥɁɨɽȈȶǼ process and internal control system are in place within the Bank and provide an independent oversight on the effectiveness of the internal and external audit functions. ěȃlj ǁljɽƃȈȢljǁ ɨɁȢljɰ ƃȶǁ ɨljɰɥɁȶɰȈƹȈȢȈɽȈljɰ Ɂǹ ɽȃlj 9 K: ƃɨlj ɰljɽ Ɂʍɽ Ȉȶ Ȉɽɰ ěljɨȴɰ Ɂǹ Ąljǹljɨljȶƺlj ӯěÝĄӰӗ ʥȃȈƺȃ ʥƃɰ Ȣƃɰɽ ɨljʤȈljʥljǁ Ɂȶ ѵѼ ɥɨȈȢ ѵѳѵѳ ƃȶǁ Ȉɰ ƃʤƃȈȢƃƹȢlj Ɂȶ ɽȃlj Company’s website at www.bankislam.com . Meetings Čljʤljȶ ӯѺӰ ȴljljɽȈȶǼɰ ʥljɨlj ȃljȢǁ ǁʍɨȈȶǼ ɽȃlj ǹȈȶƃȶƺȈƃȢ ʰljƃɨ ljȶǁljǁ ѶѴ Aljƺljȴƹljɨ ѵѳѵѳӗ Ȉȶ ȢȈȶlj ʥȈɽȃ ɽȃlj ɨljɧʍȈɨljǁ ǹɨljɧʍljȶƺʰ ƃɰ ɰɽȈɥʍȢƃɽljǁ Ȉȶ ɽȃlj ěÝĄ Ɂǹ ɽȃlj 9 K:ӝ ɥƃɨɽ ǹɨɁȴ ɽȃlj 9 K: ȴljȴƹljɨɰӗ ɽȃlj ȴljljɽȈȶǼɰ ƃɨlj ƃȢɰɁ ƃɽɽljȶǁljǁ ƹʰ ɽȃlj :ȃȈljǹ KʯljƺʍɽȈʤlj ÝǹǹȈƺljɨӗ ɽȃlj :ȃȈljǹ ŽȶɽljɨȶƃȢ ʍǁȈɽɁɨ ƃȶǁ ɽȃlj :ȃȈljǹ :ɁȴɥȢȈƃȶƺlj ÝǹǹȈƺljɨӝ BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 153