Page 96 - EXIM-Bank_Annual-Report-2023

EXIM BANK MALAYSIA
94 A Vision to Serve Empowering Growth Management Discussion and Analysis
ANNUAL REPORT 2023
STATEMENT ON INTERNAL CONTROL

In the year 2023, the BAC held five (5) scheduled meetings and four (4) Special BAC meetings to discuss and deliberate AAD’s
Annual Audit Plan and Internal Audit Reports, BNM Composite Risk Rating (CRR) Report, External Auditors’ Statutory Audit Plan
and their Report, and financial statements of the Bank. In addition, the BAC has also spearheaded the establishment of “Audit
Compliance Issues Resolution Committee (ACIRC)” headed by the PCEO with the primary objective of expediting the resolution of
issues raised by Internal Audit and Compliance Departments.

During the year, BAC’s terms of reference were expanded to encompass oversight on the effectiveness of the Integrity and
Investigation Department and its various core functions that includes engagement with external stakeholders as follows:
a) Annual performance report on the effectiveness of EXIM Bank’s Anti-Bribery Management System (ABMS) and conformance
with the standard requirement of ISO 37001 ABMS 2016
b) Submission of integrity and governance report on a biannual basis to Bahagian Pengurusan Integriti Agensi of the Malaysian
Anti-Corruption Commission

Additionally, Management has committed to the implementation of a more holistic “Merit and Demerit” system with the dual
objectives of strengthening compliance culture and instilling discipline among personnel across the Bank.

AuDIt & ASSuRAnCE DEPARtMEnt (AAD)

AAD independently reviews the adequacy and integrity of the systems of internal control in managing key risk and reports
accordingly to the Board Audit Committee (BAC) on every two months basis or more often, as and when required.
Where weaknesses have been identified as a result of reviews, improvement measures are recommended to strengthen controls
and follow-up audits are conducted by AAD to assess the status of implementation thereof by Management. In addition, the BAC
also meets the Chief Internal Auditor without the presence of Senior Management staff at least once a year.

Effective from August 2023, AAD has taken the role of “Secretariat” to the newly established ACIRC with the key tasks of preparing
meeting materials, updating the committee on the status of action taken on reported issues, as well as record minutes of meeting.

RELAtIonSHIP wItH EXtERnAL AuDItoR

The BAC has established an appropriate and transparent 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.
In 2023, BAC assessed the effectiveness of Ernst & Young (EY) as the Bank’s external auditor by utilising a questionnaire that focuses
on the overall audit process, its effectiveness and the quality of the output. The assessment by BAC took into account industry
benchmarking as a key consideration. Arising from this evaluation, the BAC had therefore recommended to the Board that EY be
reappointed as auditor.