Page 172 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

BOARD AUDIT
COMMITTEE REPORT

we also reported the outcome of the investigation and development, leveraging technology, and fostering
whistleblowing engagements conducted to the relevant collaboration to address these challenges and seize
stakeholders. Progress of outstanding issues and action opportunities for improvement and better value-added
plans are monitored and observed through the Operational towards the Bank’s transformation journey.
Risk Management Committee and subsequently presented
to the BAC monthly to ensure remediation plans are
timely implemented. Management had followed through KEY INTERNAL AUDIT ACTIVITIES
on its commitments and accomplished the disposition of Key activities by Internal Audit in 2023 are as follows:
outstanding issues highlighted within the committed deadlines.
Developed and presented to the BAC a risk-based
To enable the evaluation of the Internal Audit’s activity’s 1
Annual Audit Plan and its Revision for 2023.
conformance and effectiveness, we continuously maintained
a Quality Assurance and Improvement Programme through Conducted and completed 178 audit engagements,
both internal and external assessments. Internal assessments 2 12 investigations, and 5 whistleblowing and
are ongoing, internal evaluations of the internal audit communicated the reports to the BAC and other
activity, coupled with periodic assessments. The assessments applicable stakeholders.
identified opportunities for improvement and enhanced
Internal Audit value and the results were communicated Presented the result of the Chief Internal Auditor’s
3
to our stakeholders. Conversely, Internal Audit must obtain Scorecard for the Financial Year 2022 to the BAC.
an external assessment at least every five years by an
Presented to the BAC the Internal Audit Annual
independent reviewer outside the Bank to maintain
4 Assertion that represents a leading practice approach
conformance with the IIA’s Standards. The last external
in providing assurance to the BAC on our commitment
assessment was conducted in 2021 by IIA Malaysia where
to conforming to the Internal Audit Standards and
we were assessed as General Conforms to the Standards.
Code of Ethics for the year 2022.
The next external assessment will be due in 2026.
Prepare the write-up on the Internal Audit function
Resources
5 and Whistleblowing for inclusion in the Bank’s Annual
As of 31 December 2023, the Internal Audit Division had Report 2022.
a total of 40 auditors with diverse credentials, competencies,
Conducted and communicated the ongoing
and experience. 67% of internal auditors have obtained
6 monitoring and periodic internal assessment of
at least 1 certification related to banking and audit,
internal audit activity, including analyses and
compliance and AML/CFT, technology and cybersecurity,
information on the Internal Audit performance metrics
and Shariah. Earning a professional certification is imperative
to the BAC and other stakeholders.
in championing knowledge thereby all auditors are
encouraged to strive for professional credentials to
Delivered 45 awareness sessions to the audited units
enhance their intellect. 7 on audit-related concerns, including Shariah
compliance culture, Muamalat Ethics Line and
Furthermore, in 2023, the internal auditors had attended
various internal and external, physical and online training Whistleblowing, AML/CFT, common and recurring
programs to equip them with the latest knowledge, foster skills audit issues, and summary of investigation cases to
in a particular domain, and amplify job performance. the relevant targeted audience alerting them of the
specific concerns and suggesting ways to overcome
A total of RM 6.4 million was incurred on internal audit activity or reduce these concerns.
in 2023 consisting of personal, establishment, administration,
Recommended 48 Managing for Value recommendations
and general expenses.
8 where all recommendations were implemented by the
While we have made significant progress in enhancing our respective owners.
internal audit activity, we acknowledge challenges such as
resource constraints and evolving regulatory requirements.
Looking ahead, Internal Audit remains committed to
expanding our competency through professional

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