Page 171 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
GOVERNANCE

Reviewed and endorsed the Corporate Governance INTERNAL AUDIT FUNCTION
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Disclosure for inclusion in the Bank’s Annual Report
FY2022. Organisational
Reviewed and deliberated on the internal quality Serving as an unbiased independent assessor, the role of
6 assessment review reports, including the the Internal Auditor in 2023 is not only pivotal but
recommendations for Internal Audit improvement. multifaceted. In a fast-changing landscape, Internal Audit
has demonstrated the integration, transparency, and agility
Reviewed the ongoing monitoring and measurement approach in assessing the risk management, internal control,
7 analyses update on the Internal Audit performance and governance processes of the Bank that together prove
metrics and achievement. its continuing value to stakeholders.
Deliberated with the external auditor the results of The Internal Audit Division is led by Faidzuel Zain, the Chief
8 the audit of the annual financial statements for the Internal Auditor, appointed in October 2022. He holds a
financial year ended 31 December 2022 and the Degree in Bachelor of Accountancy and has 23 years of audit
Report to the BAC. experience in the banking industry. He is an active member
of the Chief Internal Auditors Networking Group (CIANG)
Reviewed the overall performance and effectiveness and holds Certification for Bank Auditors and Certified Credit
9 of the external auditor for the period from Professional Business.
1 January 2022 to 31 December 2022.
Responsibility, Scope, and Methodology
Reviewed the re-appointment proposal of the external
10 auditor for the Company and recommended the The Internal Audit activity is driven by the Internal Audit
re-appointment for Board approval. Charter and its function is governed by the relevant
regulatory guidelines and the International Professional
Reviewed the Annual Audit Plan for the financial year Practices Framework (IPPF) of the Institute of Internal
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ended 31 December 2023. Auditors (IIA).
Reviewed and endorsed the external auditors’ scope
12 In evaluating the effectiveness of the Bank’s internal control
of work. environment, Internal Audit continues to leverage the Internal
Control-Integrated Framework (ICIF) issued by the Committee
Reviewed and endorsed quarterly unaudited financial
13 of Sponsoring Organisations of the Treadway Commission
results of Bank Muamalat.
(COSO) in 2013. This COSO ICIF has also continue been
integrated into our rating methodology which generally
Reviewed and endorsed the Audited financial
14 statement of Bank Muamalat Group for the financial impacts the overall audit engagement conclusion and forms
part of delivering the result of the engagement to the
year ended 31 December 2022 and agreed that
stakeholders.
the financial statements were prepared in
accordance with the relevant standards and
We perdure engaging with the stakeholders in performing
regulatory requirements as to give a true and fair view
our independent risk assessment to formulate the
of the Group’s financial performance.
Annual Internal Audit Plan for 2023 approved by the BAC.
Reviewed write off and related party transactions In response to the rapidly changing risk landscape and
15 before making recommendations to the Board for stakeholders’ demand, Internal Audit assessed risks periodically
approval. and revised its 2023 Audit Plan.
From the engagements executed throughout the year,
Internal Audit communicated the results through the
engagement reports to Management and the BAC,
including the audit issues, associated risks, causes,
recommendations, and Management’s action plans for
remediation contributing to strengthening the overall
control, risk and governance of the Bank. Besides,

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