82 ENRA GROUP BERHAD ANNUAL REPORT 2024 Audit, Risk Management and Sustainability Committee Report (Cont’d) GROUP INTERNAL AUDIT FUNCTION The ARMSC is supported by an independent in-house Group’s Internal Audit (“IA”) in the discharge of its duties and responsibilities. The IA function operates within the framework of the International Professional Practices Framework by the Institute of Internal Auditors as stated in its Internal Audit Charter, which is approved by the ARMSC. The IA function provides the ARMSC with independent opinions of processes, risk exposure and systems of internal control using the “Committee of Sponsoring Organization of the Treadway Commission’s Internal Control – Integrated Framework” as a guide. The IA function assess the Group’s Internal Control system according to the following five interrelated control elements: • Control Environment • Risk Assessment • Control Activity • Information & Communication • Monitoring The IA team which is headed by Mr. Melvinder Singh Harminder Singh (“Mr. Melvinder Singh”), Group Head of Compliance & Governance, who is a Chartered Member of the Institute of Internal Auditors Malaysia with more than 20 years of experience in internal auditing. Mr. Melvinder Singh and his team independently reviews the key business processes, and reports to the ARMSC on a quarterly basis. The ARMSC reviews and evaluates the key audit issues raised by the IA team and ensures that appropriate and prompt remedial action is taken by Management. During the financial year, the IA team prepared and presented an annual audit review schedule which outlines the key business processes of the MRO, property development and energy services divisions and the Group’s governance process, ESG efforts and policy. The ARMSC had reviewed and approved the schedule with the mandate in assessing the adequacy and effectiveness of the Group’s internal control system. In line with the approved annual review schedule by the ARMSC, the IA team completed 2 routine audits and one follow-up audit, monitored the ESG’s development progress included material topics assessment, stakeholder engagement exercise, alignment of ESG target in appraisal system, training and performance data collection. The area of coverage is aligned with the Group’s Risk Management assessment covering Finance, Human Resource, Operations, Procurement, Inventory, General IT, Sales, Marketing, Fraud Assessment and Project Management. The costs incurred for the internal audit function in respect of FYE 2024 amounted to RM362,533.86. (2023: RM411,854.60) This ARMSC report is made in accordance with the resolution of the Board duly passed on 20 June 2024.
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