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SUSTAINABILITY EFFECTIVE CORPORATE FINANCIAL ADDITIONAL DETAILS OF THE ANNUAL
REPORT LEADERSHIP GOVERNANCE STATEMENTS INFORMATION GENERAL MEETING

The total number of internal auditors is appropriate and c. GIA’s analysis of the current situation of MSM
sufficient in terms of the mix of knowledge, skills and other including feedback from the AGRC and Management
competencies in line with the scope of the audit and size of (e.g. GCEO, Group COO and CFO).
MSM Group. Composition of the internal auditors and the
corresponding professional status are as follows: Once the key audit areas are developed, the staff and
resource allocation plan, budget estimates and staff
development progress are established.
No. of
Professional Status Auditors The Annual Internal Audit Plan is presented to the AGRC.
Professional accounting (ACCA, CA) or 2 The AGRC reviews and challenges the adequacy of the
Certified Internal Auditor (CIA) or post audit scope, the resources allocated, the capability skill
graduate (MBA or Masters) sets and makes recommendations before approving the 97
Annual Internal Audit Plan. Any recommendation of the
Graduate 2 AGRC is taken into the Annual Internal Audit Plan.

TOTAL 4
Once the Annual Internal Audit Plan is rolled out, the AGRC
The above includes two (2) internal auditors who are ensures that the coverage is responsive and robust to
members of the Institute of Internal Auditors Malaysia. satisfy the changing level of risk and emerging areas of
The total cost incurred for the financial year ended concern. Any deviation to the Annual Internal Audit Plan is
31 December 2020 was RM1,380,064 (2019: RM1,175,579). discussed and endorsed by the AGRC quarterly.

ROLES AND FUNCTIONS INTERNAL AUDIT REPORTING MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020

The Internal Audit function provides assurance services All Internal Audit reports are issued directly to the AGRC
for the Group locally and overseas covering all operations with copies to the relevant Management for their action.
where the Group has management control. Recommendations in the Internal Audit reports are derived
through root cause analysis.
In addition to the assurance role, the internal audit function
also undertakes a consulting role and investigative role. On a quarterly basis, the AGRC is presented with the
In its consulting role, the internal audit function undertakes summary of the audit results performed during the
advisory on governance, risk and control, policy and quarter and the progress reporting of the audit findings,
procedures review and participates in working groups to recommendations and implementation of Management’s
provide input on policy development, systems development corrective actions.
and several initiatives of the Group. Investigative audits Any concerns raised by the AGRC were addressed by the
are undertaken upon any allegation of improper, illegal and internal audit function. The AGRC followed through on any
dishonest acts based on the request of the Management unresolved matters as part of the agenda in the next meeting.
or Board.

OBJECTIVITY AND INDEPENDENCE
DEVELOPMENT OF AUDIT PLAN
The Chief Internal Auditor states the internal audit
The Audit Plan is developed after considering the following function’s declaration of objectivity and independence to
factors and inputs:
the AGRC in its Annual Internal Audit Plan. A survey of the
a. Key risks highlighted in the latest risk register and relationship of the internal auditors is undertaken once
MSM’s KPI. a year and any rotation of the internal auditors does not
result in any compromise of objectivity and independence.
b. 2019-2021 Business Plan which essentially revolves
around increasing yields, cost competitiveness,
divestment of non-core investments, rehabilitate and
rationalise poor performing investments and rationalise
corporate spending.