The Internal Audit function evaluated the adequacy and effectiveness of key controls in response to risks within the Group’s governance, operations and information systems. The areas evaluated included the following:- • Relevancy, reliability, integrity, accuracy, completeness and timeliness of financial and operational information; • Adequacy of controls to safeguard the Group’s assets; adequacy and effectiveness of the system of internal controls; • Compliance with policies, procedures, rules, regulations, guidelines, directives and laws; • Integrity of risks measurement, adequacy of control and reporting systems and compliance with approved risk management policies and procedures; • Nature of the related party transactions and conflict of interest situation that could raise questions of management integrity; • Adequacy and effectiveness of the Group’s system in assessing its capital in relation to its estimate of risks; and • Effectiveness of Information System (“IS”) in supporting the business activities and the adequacy of controls over IS management, systems development and programming, computer operations and security and data integrity. The Internal Audit function worked collaboratively with the Enterprise Risk Management function to review and assess the adequacy and effectiveness of the risk management processes within the Press Metal Group. Findings from the internal audit reviews, including the recommended corrective actions, were discussed with the Management and the relevant head of departments prior to being presented to AC at their scheduled meetings on a quarterly basis. During the year under review, the in-house Internal Auditors also conducted follow-up reviews of audit findings to ensure that corrective actions have been implemented in a timely manner. The total cost incurred for the internal audit function of the Group for the financial year ended 31 December 2022 was RM1,089,000 (2021: RM882,000). AUDIT COMMITTEE REPORT Cont’d PRESS METAL ALUMINIUM HOLDINGS BERHAD 71
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