Page 237 - MSM_AIR2021

SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 235

The Chief Internal Auditor, Zalily Mohd. Zaman Khan, In 2021, the Internal Audit function performed
is a fellow member of CPA Australia, a professional member 16 internal audit assignments (i.e. 6 assurance audits
of the Institute of Internal Auditors Malaysia, a Certified and 10 investigations) which consumed 1,969 mandays
Internal Auditor of the Institute of Internal Auditors, in comparison to 645 budgeted mandays during the year.
USA and holds an accounting degree from University of
South Australia. She has accumulated over 30 years c. Presented to the AGRC at its quarterly meetings,
of experience in various industries. the summary observations and recommendations and
Management’s corrective action implementation from
Four (4) internal auditors comprising of a Senior General the internal audit reports are issued.
Manager, a Senior Manager and one (1) team of two (2)
persons are specifically assigned for audits of MSM Group d. Performed investigative audit and presented to the
throughout the financial year. AGRC the conclusions and subsequently seeking the
recommendation and direction from AGRC on action
The total cost incurred for the financial year ended to be taken.
31 December 2021 was RM1,449,067 (2020: RM1,380,064).
e. Undertook Recurrent Related Party Transactions review
The qualification and professional status of the internal for the purpose of supporting the Committee’s
auditors together with their independence and objectivity statement in the Circular to the shareholders to seek
are disclosed in the Corporate Governance Report on Practice mandate on new and existing Recurrent Related
11.1 and 11.2. Party Transactions of the Group.

SUMMARY OF WORK OF THE INTERNAL AUDIT STATEMENT BY THE BOARD
FUNCTION
This Audit, Governance and Risk Committee Report was made
During the financial year under review, the Internal Audit in accordance with a resolution of the Board of Directors
function has undertaken the following main activities: duly passed on 21 March 2022.

a. Prepared and developed the Annual Internal Audit Plan
of MSM Group for year 2022 and presented the same
to the AGRC for approval.

b. Performed internal audits according to the Annual
Internal Audit Plan approved by the AGRC and reported
the findings, recommendations and Management’s
corrective action directly to the AGRC with copies
to the relevant Management for their action. The scope
of work was focused on the following key areas:
• Governance Framework and Structure;
• Inventory Management;
• Production Management;
• Repair and Maintenance;
• Financial closing at Subsidiary Level;
• Pay-per-use Mechanism; and
• Information Technology.