AwanBiru Technology Berhad - Annual Report 2021

The internal audit work was conducted and satisfactorily concluded in compliance with the International Professional Practice Framework of the Institute of Internal Auditors. The final communication of the internal audit plan, processes and results of the internal audit assessment are sufficiently supported by reliable and relevant information. KPMG MRC reports independently and directly to the Audit Committee in respect of the internal audit function. The Audit Committee together with KPMG MRC agree on the scope and planned internal audit activities annually and all audit findings arising therefrom are reported to the Audit Committee. KPMG MRC is allowed unrestricted access to all the documents and records of the Group and the Company which are deemed necessary for the performance of its function and independently reviews the control processes implemented by Management. It also reviews the internal controls in the key activities of the Group’s and the Company’s business based on the discussion with Management as well as with the Audit Committee. All reports and findings arising from these reviews are discussed primarily with the respective process custodians prior to a formal report being presented to the Audit Committee. As an additional function to the Group and as part of the internal audit engagement, KPMG MRC also provides business improvement recommendations for the consideration of Management and the Board to assist in the continuous development for a more efficient and comprehensive internal control environment. Summary of the activities of the internal audit function can be found in the Audit Committee Report at page 106 of this Annual Report. ASSESSMENT ON THE SYSTEM OF RISK MANAGEMENT AND INTERNAL CONTROLS The Audit Committee reviews the effectiveness of the system of risk management and internal controls of the Group and the Company on behalf of the Board. The Audit Committee comprises solely of Independent Non-Executive Directors and is not restricted in any way in the conduct of its duties. The Audit Committee also has unrestricted access to the internal and external auditors of the Company as well as all employees of the Group and the Company. The Audit Committee is also entitled to seek such other third party independent professional advice deemed necessary in the performance of its responsibility. The assessment of the adequacy and effectiveness of the internal control system is on a periodic basis. From time to time the following are taken into considerations and changes are made to improve the internal control system: • Ensuring an appropriate organizational structure for planning, executing, controlling and monitoring business operations with appropriate authorization limits. • Reviewing the consolidated risk register of the Group and receiving regular reports on any significant problems that have occurred during the year and changes to the risks over the period under review. • Reviewing external and internal audit work plans and their results. • Reviewing periodically the long-term financial objectives and business strategies of the Group. • Reviewing variance reports from major operating subsidiaries and associates against business objectives. • Effectively applying policies, processes and activities relating to internal control and risk management through control self-assessments and internal audit reviews. Transparency | Awantec Annual Report 2021 117