Sedang Dikemaskini

The Terms of Reference for the SKM Internal Audit Unit can be found at the following link:<berikut>.

Sedang Dikemaskini

Sedang Dikemaskini

i. The authority of the Internal Audit Division is established through the SKM Audit Committee (JAD), which is empowered by the SKM Board of Directors. Functionally, the division reports to the Audit Committee and reports to the Executive Chairman (PE) of SKM for administrative matters;

ii. The Internal Audit Division is granted full, independent, and unrestricted access to any information, records, systems, assets, functions, operations, and personnel within SKM, including its branches and subsidiaries;

iii. The Internal Audit Division is responsible for conducting internal audits or investigations in an independent, efficient, high-integrity, and quality-driven manner based on valid evidence, and for issuing accurate and fair reports regarding the internal audit activities carried out;

iv. The Internal Audit Division is authorised to recommend corrective or improvement actions for any audited processes or activities; and

v. The Internal Audit Division must maintain the confidentiality of all information obtained in the course of its duties.

The independence of the Internal Audit Division is crucial to prevent unfair and biased judgment. It can be upheld through the following methods:

1. The status of the Internal Audit Division within the overall structure of SKM must be clearly defined to enable auditors to effectively fulfill the objectives of the audit;

2. The position and status of the Head of Internal Audit must be equivalent to that of other division, state, and unit directors to enable effective engagement with peers and superiors in carrying out duties and responsibilities;

3. Avoidance of conflicts of interest that may arise from auditors' professional or personal relationships with staff members or entities being audited;

4. Freedom to plan, investigate, and report without any element of control, influence, pressure, or external restriction in selecting techniques, obtaining information, and presenting accurate findings from the audit;

5. The Internal Audit Division must not be involved in designing or establishing procedures, preparing records, or participating in activities that are typically subject to audit and evaluation, as this could be interpreted as compromising its independence and objectivity. However, such independence shall not be compromised when the division proposes the appropriate level of control to be applied in the development of any system or procedure.

The independence of the Internal Audit Division is essential to prevent unfair and biased judgment. This independence is upheld through the following practices:

1. Audit Planning

i. To prepare the Annual Audit Plan for the upcoming year and present it at the Fourth Quarter Meeting (October–December) of the SKM Audit Committee for approval by the Audit Committee (JAD).

2. Implementation of Audit Review

i. To prepare and submit the comprehensive audit report to the auditee within fourteen (14) days after the exit meeting with the auditee; and
ii.To ensure that the audit report is presented accurately and fairly.

i. To conduct a follow-up audit visit to the auditee to ensure the implementation of corrective actions within six (6) months after the comprehensive audit report has been tabled at the Audit Committee Meeting.

4. Audit Committee (JAD) Meetings

i. To issue a draft of the meeting minutes within seven (7) days after the meeting is held; and
ii. To distribute the confirmed minutes and extracts of the minutes to the relevant parties within seven (7) days after the minutes have been confirmed by the Chairperson of the Audit Committee.