Page 89 - EXIM-Bank_Annual-Report-2022

A VISION COMMITMENT EMPOWERING ENSURING ENHANCINg FINANCIAL
86 EXIM BANK MALAYSIA ANNUAL REPORT 2022 TO SERVE TO LEAD GROWTH SUSTAINABILITY gOVERNANCE STATEMENTS 87

STATEMENT OF

INTERNAL CONTROL

INTERNAL CONTROL b) Reviews the adequacy and comprehensiveness of the
internal audit process, scope of audit, competency of
Internal Control is defined as a process, performed by the auditors and the independence of the Internal Audit
EXIM’s Board of Directors, management, and personnel, function. The Audit & Assurance Department (AAD)
designed to provide reasonable assurance of the achievement reports to the BAC, performs regular reviews of the
of the following objectives: processes to assess their effectiveness and highlights
any significant risks affecting EXIM Bank. The BAC
• The reliability and integrity of information.
reviews the internal auditor’s auditable areas and
• Compliance with policies, plans, procedures, laws and resources annually, via the Annual Audit Plan; and
regulations and contracts.
c) Regularly reviews and holds discussions with the
• The safeguarding of assets. Management on actions taken to address lapses in
internal control and issues identified in reports prepared
• The economical and efficient use of resources. by the internal auditors, external auditors, and regulatory
authorities.
• The accomplishment of established objectives and goals
for operations or plans. d) Reviews all related party transactions, and audit and
non-audit related fees proposed by the Bank’s external
The Board recognises the importance of maintaining a
auditors.
sound system of internal control and risk management
practices, as well as good corporate governance. The Board e) Reviews the financial statements of the Bank (half-yearly
exercises overall responsibility in identifying, evaluating, and annually), preliminary results release and any other
and reviewing the adequacy and effectiveness of the formal release relating to its financial performance
Bank’s risk management, governance, and internal control. prior to escalation to the Board for approval to ensure
The Board recognises that risks cannot be eliminated accuracy and appropriateness of the financial reporting.
completely and as such, systems and processes have
been put in place to provide reasonable and not absolute In the year 2022, the BAC held six scheduled meetings
assurance against material misstatement of financial and three Special BAC meetings to discuss and deliberate
information or against losses and fraud. The Board is of AAD’s Annual Audit Plan and Internal Audit Reports,
the view that the internal control framework instituted BNM Composite Risk Rating (CRR) Report, External Auditors’
throughout EXIM Bank is sufficient to safeguard Statutory Audit Plan and their Report, and financial
stakeholder’s investments, customer’s interests, and EXIM statements of the Bank.
Bank’s assets. Reviews are continuously carried out by
the Bank to ensure effectiveness of the system. AUDIT & ASSURANCE DEPARTMENT (AAD)

AAD independently reviews the adequacy and integrity of
BOARD AuDIT COMMITTEE
the systems of internal control in managing key risk and
The Board Audit Committee (BAC) was established to reports accordingly to the Board Audit Committee (BAC) on
further strengthen EXIM Bank’s internal audit processes, every two months basis or more often as and when required.
and therefore, meets regularly with the objective of assisting Where weaknesses have been identified as a result of
the Board in managing Bank’s range of inter-related risks in reviews, improvement measures are recommended to
an integrated manner. The key responsibilities that the BAC strengthen controls and follow-up audits are conducted
execute as established by the Board to ensure the integrity of by AAD to assess the status of implementation thereof
the systems of the internal controls are as follows: by Management. In addition, the BAC also meets the
Chief Internal Auditor without the presence of Management
a) Reviews the adequacy and integrity of EXIM Bank’s staff at least once a year.
internal control systems and management information
system, including systems for compliance with applicable
RELATIONSHIP WITH EXTERNAL AuDITOR
laws, regulations, rules, directives, and guidelines,
as identified by the internal auditors, the external auditor, The BAC has established an appropriate and transparent
and regulatory authorities. relationship with the external auditor. The BAC meets at
least once a year with the external auditor without the
presence of the Management of EXIM Bank.