The Group’s internal audit function is responsible for providing independent, objective assurance to the Board regarding the implementation, operation and effectiveness of internal control systems, risk management and governance of the Group. The objective is to ascertain the extent of compliance with procedures, policies, regulations and legislation, using a risk-based approach and to recommend improvements in control, performance and productivity within the Group. The Audit and Risk Committee monitors the independence and the objectivity of the internal audit function.
The Board relies on the internal and external audit functions to report on any weaknesses and to make recommendations via the Audit and Risk Committee. The objective is to ensure the effective and efficient use of available resources and ascertain the accuracy of information used in the preparation of financial statements. No restrictions are placed over the right of access by the internal auditor to the records, the management and/or the employees of the Group.
Messrs BDO & Co. were engaged in FY2022 to conduct the internal audit function within the Group. In June 2023, a new mission was assigned for the audit of our engineering division. Due to the resignation of the internal audit partner and many members of the team, the mission was delayed until in February 2024. The objective of this assignment was to provide assurance to the Board on the adequacy and effectiveness of the controls implemented around the equipment maintenance processes at the engineering division of the Company and to review the controls around maintenance costs, supplies/parts inventory, contract management with key suppliers and the pricing basis and to assess the overall efficiency of the division. Potential weaknesses were discussed with the management and potential improvement opportunities were identified in line with best practices. Subsequently, recommendations were made to management as to the way forward to ensure better controls and risks mitigation.
In the course of the year, the Audit and Risk Committee decided to launch a tender exercise to appoint a new firm as internal auditor. Consequently, EY was appointed in May 2024. The methodology used by EY is based on the selection of specific business cycles, the identification of inherent risks, the verification of key controls in place in view of eliminating or reducing the risks to an acceptable level, the verification of the said controls to ensure that they are operating satisfactorily, the performance of walk-through tests on procedures and processes and the formulation of necessary recommendations to management for the implementation of corrective action plans.
In June 2024, a new mission was assigned to EY to conduct a review of the revenue, collections and cash handling process of the Company. The objective of this internal audit mission is to assess and report on the adequacy of the design and the operating effectiveness of controls aiming at mitigating key business risks within the revenue, collections and cash handling processes of the Company. In parallel, EY is conducting a thorough review of operational, financial and compliance risks relevant to the entities within the Group in order to come up with a list of risks to focus on as part of the audit plan for the next three years.
This year again, no financial issues were identified which would materially affect the figures reported in the financial statements. The recommendations are gradually being implemented by management.