Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 237 AUDIT COMMITTEE REPORT The Group has established its own IAD functions to provide independent and objective assurance to the AC and the Board that the established internal controls, risk management, and governance processes are adequate and operating effectively and efficiently as well as complied with the relevant internal rules and regulations. The IAD activities and practices are closely guided by the International Professional Practice Framework (“IPPF”) on Internal Auditing issued by the Institute of Internal Auditors (“IIA”). The information on the resources, objectivity, and independence of the internal auditors are provided in the Corporate Governance Report in accordance with Practice 11.2 of the Malaysian Code on Corporate Governance issued by the Securities Commission Malaysia in 2021. INTERNAL AUDIT FUNCTION The AC reviews and approves the IAD’s manpower requirements to ensure the function is adequately resourced with competent and proficient internal auditors. During the year, the Head of Risk, Integrity, and Compliance took on the additional role of Acting Head of Internal Audit as an interim measure. The new Head of Internal Audit officially joined the Group in September 2023. The total cost incurred for the internal audit function for financial year ended 31 December 2023 is approximately RM1,420,000, comprising mainly salaries, training, and traveling expenses for audit assignments. Summary of Activities The IAD implements a risk-based audit methodology in establishing its annual audit plan. The audit plan 2023 which was approved by the AC semi-annually on 20 February 2023 and 20 May 2023, had considered the Group’s identified risks and focused on auditable areas where the risks would have the most impact on the business objectives of the Group. Among the focus areas are order-book risks, revenue concentration risks, business strategy execution risks, digital governance risks, project execution risks, overseas business expansion risks, and ESG risks. The scope of the planned audit assignments for the financial year 2023 covered the following:- 1. Operational audits in Healthcare Support Commercial (Malaysia), Infrastructure Services and Property & Facility Solutions; 2. Governance audit for overseas business expansion; 3. Oracle Fusion Cloud post implementation review; and 4. Quarterly review on Related Party Transactions/Recurrent Related Party Transactions. During the year, AC had reviewed and deliberated on a total of eight (8) internal audit reports in relation to the audits carried out, together with the audit recommendations made by IAD and the Management Responses to those recommendations. Representatives of IAD attended all the planned AC meetings during the year to brief the AC on audit results and significant matters raised in the detailed IAD reports. The Heads of Divisions, where required, were also invited to the AC Meeting to provide further explanations on the audit observations highlighted. Where appropriate, the AC directed Management to rectify and improve control and workflow procedures. The AC, at all its quarterly meetings, also reviewed the implementation status of the corrective actions arising from the audit recommendations to ensure that the key risks and control lapses were addressed in a timely manner.
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