Page 172 - Bank Muamalat_AR24

170 BANK MUAMALAT MALAYSIA BERHAD

BOARD AUDIT COMMITTEE REPORT

Internal auditors participate in continuous professional 3. Presented the proposed Chief Internal Auditor’s
development programmes to maintain excellence and stay Scorecard for FY2025 to the BAC, incorporating the
ahead of emerging risks. Training initiatives include: relevant key performance indicators aligned with
strategic objectives and requirements.
Regulatory and Compliance: Ensuring auditors remain
updated on the latest regulatory requirements set by 4. Presented the Internal Audit Annual Assertion to the
regulators and other governing bodies. BAC, reaffirming our commitment to conforming to
Internal Audit Standards and the Code of Ethics for
Technology and Cybersecurity: Equipping auditors with the year 2023.
knowledge of the latest developments in IT governance
and cyber risk management. 5. Reviewed and enhanced the Internal Audit Charter,
including the establishment of the Internal Audit
Shariah: Strengthening auditors’ expertise of the Shariah Mandate within the Charter and the Internal Audit
fundamental, principles, compliance, and application on Policy, and presented them to the BAC, incorporating
Islamic banking. the latest audit standards issued by the IIA.

Leadership and Professional Skills Development: 6. Reviewed and enhanced the Whistleblowing Policy,
Strengthening auditors’ ability to provide strategic insights and presented it to the BAC to strengthen the
and enhance communication with stakeholders. governance framework and improve reporting
mechanisms.
In line with its commitment to excellence, the Internal Audit
function incurred an expenditure of RM 6.9 million, 81% of 7. Prepared the write-up on the Internal Audit function,
the approved budget during the financial year covering as well as Whistleblowing and the Muamalat Ethics
personnel expenses, establishment costs, administrative Line for inclusion in the Bank’s Annual Report 2023,
expenses, and general expenditures to support its operations, emphasising our commitment to transparency,
reinforcing its capacity to deliver audit services. accountability, ethical reporting mechanisms, and
long-term value creation.
The Internal Audit function will continue its transformation by
embracing digital tools, enhancing data analytics capabilities, 8. Conducted and communicated continuous monitoring
fostering a highly skilled audit team, optimising audit and periodic internal assessments of Internal Audit
processes, and ensuring governance standards compliance, activity, including summaries of audit reports, audit
to enhance the quality and impact of audits. These strategic resolution tracking, and analysis and performance
initiatives will ensure that the function remains a critical partner metrics, to the BAC and other stakeholders.
in managing risks and supporting the strategic objectives of
the Bank. 9. Recommended 42 essential Managing for Value (MFV)
recommendations as part of its commitment to driving
value creation and operational efficiency, where all
KEY INTERNAL AUDIT ACCOMPLISHMENTS
MFV were implemented by the respective owners,
Key accomplishments by the Internal Audit function in 2024 demonstrating strong collaboration and a commitment
are as follows: to continuous improvement within the Bank.
1. Developed and presented to the BAC a risk-based 10. Delivered 35 awareness sessions to the audited units
Annual Audit Plan and its revision for 2024, outlining on various fundamental topics aimed at educating
our scope of work. Key areas of focus included liquidity, and promoting a compliance-oriented culture and
regulatory compliance, technology and cybersecurity, risk awareness among stakeholders. Topics included
credit risk, operations, human capital, data integrity, and common and recurring audit issues, AML/CFT processes,
capital, all of which encompass the Bank’s operations and Shariah compliance risk culture, investigation cases
business activities. involving fraud, misconduct, and negligence, the impact
and enforcement of consequence management to the
2. Conducted and completed audits on 143 auditable targeted audience, and encouraging whistleblowing
areas, 9 investigations, and 2 whistleblowing cases, through the Muamalat Ethics Line.
with reports communicated to the BAC and other
relevant stakeholders.