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Financial Reports &
Governance Other Information HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 77

INTERNAL AUDIT REVIEW OF THIS STATEMENT
The Board recognises that the Internal Audit (“IA”) function is As required by Paragraph 15.23 of the MMLR, the External
an integral component of the governance process. IA reports Auditors have reviewed this Statement on Risk Management
functionally to the Board Audit Committee (“BAC”). The main and Internal Control. Their limited assurance review was
roles and responsibilities of IA is to provide an independent performed in accordance with Audit and Assurance Practice
and objective assurance designed to add value and improve Guide (AAPG) 3 issued by the Malaysian Institute of
HRC’s operations. IA discharged its role by recommending Accountants. AAPG 3 does not require the External Auditors to
systematic and disciplined approaches to evaluate and improve form an pinion on the adequacy and effectiveness of the risk
the effectiveness of risk management, governance, and internal management and internal control systems of the Company.
control processes.
CONCLUSION
In FY2023, the following reviews were performed and reported
to the BAC: The Board has received assurance from the CEO and CFO that
HRC’s financial records are properly maintained and that its
a. Audit engagements were carried out based on the annual risk management and internal control system is operating
internal audit plan approved by the BAC. IA assessed the adequately and effectively in addressing the material risks
audit areas with regards to risk exposures, compliance within the Company in its current business environment.
with approved policies and procedures and relevant laws
and regulations. For any gaps identified, IA provided The Board has reviewed the adequacy and effectiveness of the
recommendations to Management to improve the risk management and internal control system of the Company
effectiveness of controls where applicable. and is of the view that they are sound and provide a reasonable
level of confidence, but not absolute assurance, that HRC is not
IA reports including recommendations and Management’s affected by any event that cannot be reasonably foreseen.
agreed action plans were submitted to the BAC for their
deliberation. IA also followed-up on the implementation In the year under review, the Board is not aware of any
status of Management’s agreed action plans and thereafter significant control failure or weakness that would have resulted
reported the status to the BAC. in material losses, contingencies or uncertainties requiring
separate disclosure in this Annual Report.
b. Surveillance audits were carried out by SIRIM Berhad
for ISO 9001:2015 Quality Management System, Following any economic effects of the geopolitical tensions,
ISO 14001:2015 Environmental Management Systems, macroeconomic variables, and evolving policies and regulations,
ISO 45001:2018 Occupational Health and Safety the Board will continue to review measures initiated by HRC
Management System, ISO27001:2013 Information Security to minimise the potential risk and impact arising from these
Management System and ISO37001:2016 Anti Bribery situations.
Management System. Surveillance audit for ISO17025:2017 This Statement on Risk Management and Internal Control is
Laboratories was carried out by Department of approved by the Board on 26 March 2024.
Standards Malaysia.
The reviews concluded that HRC conformed to the
requirements of the management systems.