Bahri Annual Report-2011

The National Shipping Company of Saudi Arabia

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Internal Audit and Control

The Internal Audit and Control Department has implemented several tools and programs in the control applications which led to the integration of the head office, subsidiaries and regional offices of the Company. The Department has also completed the internal audit functions for the year 2011, according to the approved audit plan. This included the review and examination of accounts and documents relating to the various offices, affiliates and branches. The Department has achieved its goals of completing those tasks, according to the audit plan, and submitted its recommendations to the Company’s Audit Committee which is directly in charge of the functions of this Department. The Internal Audit and Control Department has also implemented the Governance, Risk and Compliance Management System (GRCM), which is a component of the unified Enterprise Resource Planning (ERP) system. This systemhas contributed to the promotion and improvement of audit functions, enhanced transparency, risk control and overall control over the Company’s dealings and operations. The system also helped in converting the internal audit functions to an electronic operating system.

The Internal Audit and Control Department employs highly qualified professionals, in addition to competent and qualified technical marine personnel with experience in surveying the maintenance of vessels. The Department continues to develop the capacity of its staff and to refine their skills through the application of modern technology in the implementation of audit programs, training and access to new audit and risk analysis information. The Internal Audit and Control Department verifies that the business units and offices of the Company comply with the stated rules, standards, policies, procedures, controls, government laws and relevant legislation. The Department also develops relevant plans and projects related to risk management based on international audit standards. The Internal Audit and Control Department implemented applications for internal control systems of the Company and its affiliates. These systems aim to protect the assets of the Company, maintain and protect its accounting records against any unauthorized use, ensure the application of accounting policies, regulations and internal procedures of the Company in order to obtain reliable financial reporting.

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