INTERNAL AUDIT FUNCTION The Audit Committee is supported by an independent and adequately resourced in-house Group Internal Audit (“GIA”) in the discharge of its duties and responsibilities. The function of GIA is guided by its Internal Audit Charter which defines the authority, duties, and responsibilities and independence of all GIA members. GIA reports functionally to the Audit Committee and maintains its impartiality, proficiency and due professional care. The principal responsibility of GIA is to provide independent and objective assurance and advisory services designed to add value and improve the operations of the Group. This includes the continuous examination and evaluation of the adequacy and effectiveness of the Group’s risk management, internal control and governance processes. The audit approach and objectives are based on the guidance of the Institute of Internal Auditors’ International Professional Practices Framework (“IPPF”) and the Committee of Sponsoring Organisations of the Treadway Commission (“COSO”) Internal Control – Integrated Framework. Reference is made to the frameworks in assessing and reporting on the adequacy and effectiveness of the internal control, governance and risk management. During the financial year, the key activities performed by GIA included the following: • Performed periodic audit engagement which covered the review of internal controls on key operating processes based on the approved internal audit plan using a risk-based approach, and progressively issuing detailed internal audit reports to the Audit Committee. This included the conduct of the following audits: a) Project Implementation and Management; b) Marketing and Sales; c) Sales and Credit Administration; d) Property Management; e) Mall Operations; f) Resort Management: Membership Department; g) Data Access and Data Management; and h) Management of fixed assets and building materials. During FY2022, internal audit reports which incorporates key control issues, significant risks, recommendations to improve on matters raised during the course of the audits and managements comments and remedial actions were issued and tabled to the Audit Committee. None of the audit findings have resulted in any material losses, contingencies or uncertainties that would require disclosure in the Company’s Annual Report. • Prepared the annual audit plan for deliberation and approval by the Audit Committee. • Performed follow up procedures on the implementation of agreed upon action plans to ensure that necessary actions have been taken/ are being taken as recommended. • Reviewed recurring related party transactions on a quarterly basis on the adequacy, appropriateness and compliance of existing established procedures on monitoring of recurrent related party transactions. • Reviewed on ad-hoc basis, areas where there were concerns that affected financial reporting, internal controls and governance. In an effort to provide value added services, GIA also provided additional assurance and advisory services upon request by Management in relation to compliance, governance, risk management and internal controls. GIA is adequately resourced with a total of seven (7) internal auditors. All internal auditors are equipped with relevant experience and professional qualifications and are members of The Institute of Internal Auditors Malaysia. In order to perform their functions effectively, the internal auditors are encouraged to continuously enhance their knowledge, skills and competencies through relevant professional courses, seminars, training courses and on-the-job-training. None of the internal audit personnel has any relationships or conflict of interest that could impair their objectivity and independence in conducting their internal audit functions. The operational costs incurred by GIA for the financial year 2022 amounted RM985,791 (2021: RM927,163). The Audit Committee Report is made in accordance with a resolution of the Board dated 26 April 2023. 140 ANNUAL REPORT 2022
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