KEY INTERNAL CONTROL PROCESSES (Cont’d) 2. Monitoring and Reporting Monthly management meetings are led by the respective Country Heads for various lines of operations and business units, on key business performance, operating statistics, and regular matters. This enables effective monitoring of significant variances and deviation from standard operating procedures and budget. The Board is also kept appraised of the Company’s performance during the scheduled Board meetings with the Company’s business performance and plans being reviewed and deliberated. 3. Policies and Procedures The Group has defined and documented internal policies and standard operating procedures to ensure internal controls are implemented and in compliance with the applicable laws and regulations. The policies and procedures are reviewed on a regular basis to ensure its relevance and effectiveness where the GIA carries out reviews of the Group’s policies and procedures according to the approved annual audit plans. Compliance with these procedures is an essential element of the internal control framework. 4. Internal Audit Function As part of the Group’s efforts to establish a sound framework for risk management and internal controls, an in-house audit function was established as a key component of its internal controls processes. The 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. Acting as the third layer of defence in internal controls, the GIA performs audits within the Group in accordance with the annual internal audit plan which is formulated through a comprehensive risk-based methodology and approved by the ARC. The audits are designed to test the appropriateness of control design and implementation as well as compliance with the existing policies and procedures. The results of all internal audit reviews, together with the findings and recommendations, are presented to Management for discussion and formulation of the necessary corrective action plans prior to finalisation of the internal audit reports. Status of implementation of the agreed upon audit recommendations is tracked until completion and updates are highlighted by the Head of GIA to the ARC. Relevant parties are invited to be present during such presentations. The GIA was headed by Mr. Liow Tien Chin, a member of Certified Practicing Accountant (“CPA”) Australia and Chartered Member of the Institute of Internal Auditors Malaysia (“IIAM”) from year 2016 to 19 January 2024. On 8 January 2024, Mr. Wong Yong Hau (“Mr Wong”) joined the Company as the Head of GIA to replace Mr. Liow Tien Chin. Mr Wong is a member of CPA Australia and Chartered Member of the IIAM with 17 years of internal audit experience. The Head of GIA is supported by a team of professionals who possess the relevant qualifications and experience and have adequate resources to fulfil the internal audit plan for the next financial year. The previous Head of GIA, Mr. Liow and the current Head of GIA, Mr. Wong, had confirmed the Internal Auditors’ independence on 27 March 2023 and 26 February 2024 respectively to the ARC, both having signed the annual declaration that they were and had been free from any relationship or conflict of interest which could impair their objectivity and independence. Based on the confirmation given by the Head of GIA, the ARC is satisfied that the internal audit personnel are free from any relationships or conflicts of interest, which could impair their objectivity and independence and that the audit programme for the financial year under review was carried out by the GIA as planned. An external organisation was appointed in FY 2022 to conduct a Quality Assurance Review (“QAR”) to evaluate the GIA’s function in providing the Group with the appropriate level of service in accordance with the Institute of Internal Auditors’ (“IIA”) International Professional Practices Framework (“IPPF”). The GIA was accorded general conformance with IIA’s IPPF. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL CONT’D 64 GHL SYSTEMS BERHAD 199401007361 (293040-D)
RkJQdWJsaXNoZXIy NDgzMzc=