Page 148 - Full Book_24.4.2021

CORPORATE GOVERNANCE
OVERVIEW STATEMENT

(PURSUANT TO PARAGRAPH 15.25 (1) OF THE MMLR OF BURSA SECURITIES)

Based on the audit carried out in the financial year ended 31 December 2020, amongst The scope of the Internal Audit Reports
the risk covered are non-compliance with regulatory requirements, non-compliance covers improvement opportunities, audit
with procedures and policies, ineffective human resource management, deficiencies in findings, management responses and
procurement management, breach of cyber security and non-Shariah compliance. corrective actions in areas with significant
risks and internal control deficiencies.
During the financial year under review, IAD issued a total of four (4) audit reports of All Internal Audit Reports on the Company
which one (1) for BHB’s operations and Shariah, one (1) for IT systems and one (1) each and its wholly-owned subsidiaries were
for BIMB Securities (Holdings) Sdn. Bhd. and Syarikat Al-Ijarah Sdn. Bhd. in relation to tabled to the BAEC for deliberation.
INTEGRATED ANNUAL REPORT 2020 COMpany auDIt repOrt auDIt ratInG feedback on the progress of business
Operations and Shariah. Based on the audit performed, the ratings are as follows:
The Management were present at the
BAEC meetings to respond and provide
process
opportunities
improvement
Operations and Shariah
Good
identified by IAD. The Minutes of the
BIMB Holdings Berhad
BAEC meetings were subsequently tabled
IT System
Satisfactory
BIMB Securities (Holdings)
Sdn. Bhd. Operations and Shariah Good to the Board for notification.
Syarikat Al-Ijarah Sdn. Bhd. Operations and Shariah Good
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As at 31 December 2020, a total of RM16,000.00 fees was payable to IAD, based on the staff strength of five (5) internal auditors
with an estimated of 53 man-days.
BIMB HOLDINGS BERHAD 199701008362 (423858-X) The summary of the activities of the IAD for the year under review are as follows: auDIt ISSueS
IaD aCtIvItIeS In 2020

aDeQuaCy OF InternaL COntrOLS
InternaL auDIt pLan
Follow-up on the Management
Provide independent and objective assurance on
Preparation of the Audit Plan for
the adequacy of internal controls implemented
corrective actions on audit issues
approval of the BAEC. The Audit Plan
was developed based on assessment
to mitigate risk exposures. Prepare audit report
whether corrective actions taken
of the significant potential risk
consisting of observations, improvement
have generally achieved the desired
opportunities, management responses, deadline
exposure of the auditable areas.
results.
and person-in-charge for implementation or raised by the IAD. Determine
corrective actions have been issued to the
respective stakeholders.
auDIt repOrt COntrOLS COMpLIanCe
Report to the BAEC, the final audit Reported to the BAEC the adequacy, reliability, Review compliance with relevant
report highlighted in the audit plan integrity and compliance of: legal, regulatory and internal policies
coverage, audit scope and risks • risk management, internal controls and as well as in compliance with Shariah
covered, audit rating, significant governance processes; rules and principles as determined by
audit findings, findings escalated for • Information Technology, stress testing the Shariah Supervisory Council and
Management’s immediate action and procedures and practices and the Shariah Compliance Policy.
status of corrective actions. back-up system to cover for contingencies
and disaster; and
• Regulatory reporting, accounting records,
financial reports and management
information.
reLateD party tranSaCtIOnS

Provide an independent review on the related party transactions between Lembaga Tabung Haji, BHB and its subsidiaries.