Annual Report 2020

INTERNAL AUDIT FUNCTION The Company outsourced its internal audit function to an independent professional consulting firm and, they together with the Group’s designated Risk Management Manager, are tasked to provide assurance to the AC and the Board on the adequacy and effectiveness of the internal control systems and risk management processes in the Company and its subsidiary companies. The internal audit also acts as a source to assist the AC and the Board in strengthening and improving management and operational control in pursuit of best practices. The internal audit is risk-based and has incorporated the Group’s identified risks focusing on those which would have most impact to the business objectives of the Group. Among the focused areas were revenue and operational cost control management, including internal accounting control and regulatory compliance. Activities The activities undertaken by the internal auditors are in conformance with the International Professional Practice Framework (IPPF) on Internal Auditing issued by the Institute of Internal Auditors (IIA). The internal audit function provided the AC independent and objective reports on the state of internal control of the various operating business units within the Group on a quarterly basis, and the extent of compliance with the Group’s established policies and procedures as well as relevant statutory requirements. Significant issues were identified and discussed with Management and proposed remedial actions were deliberated and monitored. A summary of work of the internal audit function for the financial year ended 31 March 2020 is as follows: a) Formulated the internal audit plan and presented the audit plan for the AC’s review and approval. b) Executed the internal audit reviews covering the following business processes or areas in accordance with the approved audit plan:- • Revenue control management, which involved assessing the adequacy of controls over salesmanagement, price setting, and credit control management. • Cost control management, which involved assessing the adequacy of controls over procurement, inventory management, and asset management. • Operational and compliance control management, which involved assessing the adequacy of controls over information technology, halal compliance, warehouse control, and retail operations. c) Reported to the AC every quarter the audit findings, audit observations and recommendations for improvements. d) Followed up on remaining actions taken by Management. Audit Fees During the financial year ended 31 March 2020, the total cost incurred for the internal audit function was RM132,000. A Milestone on Our Sustainable Growth Journey 85