Page 170 - Bank Muamalat_AR24

168 BANK MUAMALAT MALAYSIA BERHAD

BOARD AUDIT COMMITTEE REPORT

Met external auditor without the Management present. Led by Faidzuel Zain, the Chief Internal Auditor (CIA),
the Internal Audit function is organised into specialised
Reviewed and deliberated on the internal quality teams focusing on various business and operational areas.
assessment review reports, including the recommendations This structure ensures efficiency and effectiveness in
for Internal Audit improvement. executing its responsibilities. While collaborating alongside
senior management, the function maintains its independence
Reviewed the ongoing monitoring and measurement through direct reporting to the Board Audit Committee (BAC).
analyses update on the Internal Audit performance metrics
and achievement. The CIA holds a Degree in Bachelor of Accountancy from
Universiti Teknologi MARA and has 24 years of audit
Deliberated with the external auditor the results of the experience in the banking domain. With a background in
audit of the annual financial statements for the financial auditing and accounting, he brings extensive experience
year ended 31 December 2023 and the Report to the in risk management, internal controls, and governance.
BAC.
He holds Certification for Bank Auditors and Certified Credit
Reviewed the overall performance and effectiveness of Professional Business and is an active member of the Chief
the external auditor for the period from 1 January 2023 Internal Auditors Networking Group (CIANG) and Institute
to 31 December 2023. of Internal Auditors Malaysia.

Reviewed the re-appointment proposal of the external Responsibility, Scope, and Methodology
auditor for the Company and recommended the The Internal Audit function is responsible for evaluating the
re-appointment for Board approval.
effectiveness and efficiency of the Bank’s risk management,
Reviewed the Annual Management Plan for the financial internal controls, and governance processes. Its scope
year ended 31 December 2025 and recommended to the encompasses operational, financial, compliance, Shariah,
Board for approval. and technology audits. The function ensures adherence
to applicable regulatory guidelines and international best
Reviewed and endorsed the external auditors’ scope of practices.
work.
The Internal Audit function is tasked with:
Reviewed and endorsed quarterly unaudited financial
results of BMMB. Assessing and enhancing the effectiveness of internal
controls, governance, and risk management frameworks.
Reviewed and endorsed the Audited financial
statement of BMMB Group for the financial year ended Conducting independent assessments to ensure
31 December 2023 and agreed that the financial compliance with policies, procedures, and regulatory
statements were prepared in accordance with the relevant requirements.
standards and regulatory requirements as to give a true Providing recommendations to improve operational
and fair view of the Group’s financial performance.
efficiency and mitigate potential risks.
Reviewed write-offs and related party transactions before Assisting management in strengthening internal controls
making recommendations to the Board for approval. by identifying weaknesses and proposing corrective
measures.
INTERNAL AUDIT FUNCTION
Investigating potential fraud cases and irregularities,
Organisational including whistleblowing within the Bank.
As a key enabler of sound corporate governance, the Internal To preserve its objectivity and independence, the Internal
Audit function continues to play a crucial role in safeguarding Audit function reports functionally to the BAC and
the Bank’s operational integrity, financial stability, and administratively to the President and Chief Executive Officer.
stakeholder confidence. Through its proactive, independent, The BAC reviews and approves the annual audit plan,
and risk-based approach, it provides valuable insights and monitors the progress of audit engagements, and assesses
recommendations that drive continuous improvement the adequacy of internal controls based on audit issues and
in fostering a culture of transparency, accountability, and recommendations.
resilience across the Bank.