170 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 c) Internal Audit • Reviewed and approved the annual internal audit plan proposed by Group Internal Audit Department (“GIA”); • Reviewed and approved GIA’s staffing requirements and budget to ensure adequacy of resources and competencies within GIA; • Discussed with the internal auditors on risk considerations, scope of work, functions, adequacy and competency of resources and co-ordination with external auditors; • Conducted four (4) private sessions with internal auditors in March, June, September, and December 2023, without the presence of Executive Directors and/ or Management; • Reviewed the reports prepared by GIA on the state of internal control and efficiency of the audited coverage scope of the Group; • Monitored the outcome of the audits and follow-up audits conducted to ascertain all agreed action plans were adequately implemented; and • Assessed the performance of GIA and reviewed its effectiveness in the audit process. d) External Audit • Discussed with the external auditors the annual audit plan, nature and scope of audit as well as audit procedures, prior to the commencement of audit; • Conducted two (2) private sessions with external auditors in March 2023 and September 2023, without the presence of Executive Directors and/or Management; • Reviewed the external auditors’ audit findings for the financial year under review; • Reviewed with the external auditors the Statement on Risk Management & Internal Control (“SORMIC”) of the Group for inclusion in the Annual Report; and • Reviewed the overall performance of the external auditors, including assessment of their independence, technical competency, resources and reasonableness of their audit fees and non-audit fees. e) Other matters • Reviewed and endorsed the Report on AC and SORMIC for inclusion in the Annual Report; • Reviewed and monitored the Conflict of Interest (“COI”) situations and Recurrent Related Party Transactions. During FYE 2024, a potential COI was identified, involving certain directors of the Group engaged in a competing business. The AC conducted a comprehensive review of the situation and implemented targeted measures to manage the potential COI; and • Reviewed and recommended the dividend pay-out. INTERNAL AUDIT FUNCTION The Group’s IA function is carried out by an in-house internal audit team comprising of six (6) members, post co-sourcing arrangement with Ernst & Young (“EY”) which ended in Q1 FYE 2024. The GIA function provides independent assurance to the AC on the adequacy and effectiveness of the Group’s risk management, internal control and governance processes implemented by the Management. GIA reports functionally to the AC and administratively to the Group CEO to maintain its impartiality and objectivity. The GIA function is guided by the Internal Audit Charter approved by the AC and performs internal audit reviews in accordance with the principles of the International Professional Practice Framework, set forth by the Institute of Internal Auditors. GIA carried out audits according to the internal audit plan which had been approved by the AC. Internal audits were carried out to provide assurance that internal controls are established and operating as intended to achieve effective and efficient operations while adhering to applicable policies, guidelines and procedures. GIA conducted independent reviews and risk exposure evaluations relating to the operations and management information system. In performing such reviews, recommendations for improvements and enhancements to the existing internal control system and work processes were made. During FYE 2024, a total of twelve (12) internal audit reports, incorporating audit findings, audit recommendations and management’s responses, were issued to the AC and the Management of the respective Business Units (BU). The Management is responsible for ensuring that corrective and/or improvement actions are taken within the stipulated timeframe and all findings identified by GIA are tracked and followed up on a quarterly basis with the status of the implementation reported to the AC accordingly.
RkJQdWJsaXNoZXIy NDgzMzc=