SUMMARY OF ACTIVITIES DURING THE FY2023 (Cont’d) Other Activities: a. Reviewed the Statement on Risk Management and Internal Control, Corporate Governance Overview Statement, and ARC Report prior to the Board’s approval for inclusion in the Annual Report. b. Reviewed the Corporate Governance Report prior to the Board’s approval for submission to Bursa Securities. c. Conducted a self-assessment to evaluate the Committee’s overall effectiveness in discharging its responsibilities. d. Verified the allocation of options pursuant to Employees Share Scheme (“ESS”) 2021. INTERNAL AUDIT FUNCTION The Group has established an internal audit function as a key component of its internal control appraisal process. The Head of GIA reports independently to the ARC and is guided by a formalised Internal Audit Charter and The Institute of Internal Auditor’s International Professional Practice Framework. The main responsibility of the GIA is to undertake independent assessments on the adequacy and effectiveness of the existing system of internal controls and work processes to ensure: a. Reliability and integrity of financial and operational information; b. Effectiveness and efficiency of operations; c. Safeguarding of assets; and d. Compliance with applicable laws and regulations. The GIA does not have any direct operational responsibility or authority over any of the activities it audited and neither had they engaged in any activity that might impair the internal auditor’s judgement. All internal audit staff declare annually that they are free from any relationships or conflict of interest. The annual internal audit plan was approved by the ARC to ascertain its scope and coverage of the Group’s activities, including the adequacy of manpower. The GIA adopts a risk-based approach towards undertaking internal audit reviews for the Group based on the annual internal audit plan approved by the ARC. The GIA incorporated a structured internal audit rating methodology that appraises an overall rating of an audit report by a scoring system. The said system provides the Management and the ARC a consistent and concise assessment of the risks posed by the area or function being reviewed. The major activities undertaken by the GIA function are summarised as follows: a. Preparing, presenting, and obtaining approval from ARC for the Group’s annual internal audit plan and annual budget; b. Collaborating with Group Compliance Department to continuously monitor the Group’s compliance with the MCCG, MMLR and the relevant rules and regulations; c. Reviewing the adequacy and effectiveness of the internal controls in particular the key business processes of the Group; d. Undertaking follow-up audits on the implementation of action plans committed by Management to ensure all audit findings highlighted are being effectively and adequately addressed; e. Identifying areas of opportunities for improvement in respect to operations and processes; AUDIT AND RISK COMMITTEE REPORT CONT’D 58 GHL SYSTEMS BERHAD 199401007361 (293040-D)
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