38 MSC BERHAD INTERNAL AUDIT FUNCTIONS The Company has outsourced its internal audit division to an independent professional consulting firm, Sterling Business Alignment Consulting Sdn Bhd (“Sterling”), to assist the Audit Committee in discharging their responsibilities and duties. Sterling’s function is to undertake independent regular and systematic reviews of the system of internal controls to provide reasonable assurance that such system continues to operate satisfactory and effectively. In developing the scope of the internal audit function, the Audit Committee has satisfied that: (a) the person responsible for internal audit has relevant experience, sufficient standing and authority to enable him to discharge his functions effectively; (b) internal audit has sufficient resources and is able to access information to enable it to carry out its role effectively; and (c) the personnel assigned to undertake internal audit have the necessary competency, experience and resources to carry out the function effectively. Sterling’s scope of work includes the review of the adequacy of risk management, operational controls, and compliance with established procedures, guidelines and statutory requirements. The details of internal audit functions are disclosed in the Statement on Risk Management and Internal Control in this Annual Report. Sterling is free from any relationships or conflicts of interest, which could impair their objectivity and independence of the internal audit function. The Internal Auditors do not have any direct operational responsibility or authority over any of the activities audited. The Audit Committee is of the opinion that the internal audit function is effective and able to function independently. For the financial year ended 30 June 2024, four (4) internal audit reviews had been carried out by Internal Auditors:- Audit Period Reporting Month Name of Entity Audited Audited Areas July 2023 - September 2023 November 2023 Excel Force MSC Berhad • Quality Assurance and System Design. October 2023 - December 2023 February 2024 Excel Force MSC Berhad • Corporate Governance (CG) and Anti-Bribery Management System (ABMS) review. January 2024 - March 2024 May 2024 Excel Force MSC Berhad • Finance and Accounts and Procurement. April 2024 - June 2024 August 2024 Excel Force MSC Berhad • Research and Development. Follow-up status reviews were also carried out to ensure weaknesses identified have been or are being addressed. During the financial year under review, Sterling presented their follow-up status reports on previously reported audited findings in respect of the following functional scopes of the Group:- Reporting Month Name of Entity Functional Scopes November 2023 Excel Force MSC Berhad • Management Information System reported in February 2023. February 2024 Excel Force MSC Berhad • Management Information System reported in February 2023. • Quality Assurance and System Design reported in November 2023. May 2024 Excel Force MSC Berhad • CG and ABMS reported in February 2024. August 2024 Excel Force MSC Berhad • CG and ABMS reported in February 2024. • Finance and Accounts and Procurement reported in May 2024. Based on the internal audit reviews conducted, none of the weaknesses noted have resulted in material losses, contingencies, or uncertainties that would require separate disclosure in this Annual Report. The Internal Auditors are free from any relationships or conflicts of interest, which could impair their objectivity and independence of the internal audit function. The Internal Auditors do not have any direct operational responsibility or authority over any of the activities audited. The Audit Committee is of the opinion that the internal audit function is effective and able to function independently. The fee (inclusive of sales and services tax) paid to the professional firm in respect of internal audit function for the financial year ended 30 June 2024 was RM41,222.00 Audit Committee Report (cont’d)
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