Ntegrator International Ltd. - Annual Report 2020

26 CORPORATE GOVERNANCE REPORT ACCOUNTABILITY AND AUDIT (continued) Principle 10: Audit Committee (AC) (continued) The internal audit function of the Group is outsourced to Yang Lee & Associates (“YLA” or “IA”), an independent and professional service firm. YLA is a professional service firm that specialises in the provision of Internal Audit, Enterprise Risk Management and Sustainability Reporting advisory services. The firm was set up in the year 2005 and currently maintains a diverse outsourced internal audit portfolio of SGX-ST listed companies across different industries including distribution, manufacturing, services, food & beverage, trading, retail and property development industries. The IA is adequately resourced and guided by the International Standards for the Professional Practice of Internal Auditing (IIA Standards), issued by the Institute of Internal Auditors. YLA is a corporate member of the Institute of Internal Auditors Singapore and is staffed with professionals with relevant qualifications such as the Certified Internal Auditor qualification with the Institute of Internal Auditors. The IA reports directly to the AC. The IA has unfettered access to all the Company’s documents, records, properties and personnel, including access to the AC. The AC approves the appointment, termination, evaluation and compensation of the IA ( Provision 10.4 of 2018 Code ). The AC reviews and approves the internal audit scope and plan to ensure that there is sufficient coverage of the Group’s activities. It also oversees the implementation of the internal audit plan and ensures that Management provides the necessary co-operation to enable the IA to perform its function. The IA completed one (1) review of the Group in FY2020 in accordance with the internal control plan approved by the AC under the Group Risk Management Framework. The findings and recommendations of the IA, Management’s responses, and Management’s implementation of remedial actions have been reviewed by the AC. The IA engagement team comprises two Directors, a Manager and supported by two Associates. Each of the two Directors has more than 20 years of relevant experience whilst the Manager has more than 10 years of relevant experience. The AC annually reviews the independence, adequacy and effectiveness of the internal audit function to ensure that the internal audits are performed effectively. The AC is satisfied that the IA is independent, effective, has the necessary resources to adequately perform its functions and staffed by qualified and experienced personnel. Whistle-Blowing Policy The Company has a Whistle-Blowing Policy which serves to encourage and to provide a channel for staff of the Group, to report and to raise in good faith and in confidence, any concerns about possible improprieties in matters of financial reporting or other matters. This Policy is to ensure that arrangements are in place, for the independent investigation of such matters and concerns raised on financial or other improprieties, and for appropriate follow-up action. The objectives of the Whistle-Blowing Policy are: • to communicate the Company’s expectation of employees of the Group in detecting fraudulent activities or malpractices; • to guide employees on the course of action when addressing their concerns or suspicions of fraudulent activities or malpractices; • to provide a process for investigations and management reporting; and • to establish the policies for protecting whistle-blowers against reprisal by any person internal or external of the Group. There were no reports through whistle-blowing in FY2020.