Bahri Annual Report-2014

Internal Audit Department The Internal Audit Department is an independent function in line with the Company’s governance by-law which applies the latest international standards and systems. The Department consists of professionals in the field of maritime transportation holding vast experience in internal auditing. The Department gives attention to develop capacity of its internal auditors through providing training, reviewing latest developments in the field of audit and risk analysis and facilitating with the latest related technologies.

The audits cover all sectors of the Company according to a plan prepared in advance by the Internal Audit Department. This plan is discussed and approved by the audit committee functioning under the Board of Directors.

The audit plan defines the tasks of the audit team through covering all activities of these sectors, say financial, administrative or technical activities related to the Company’s core businesses. This includes the scope of risk measurement as an essential part, as risk assessment is carried out within this scope. The audit plan also verifies that the Company’s business units, offices and subsidiaries implement the policies, procedures, standards and effective monitoring systems and comply with the international and local laws in all of their activities. The audits can help to examine full compliance with implementing the internal systems applied to maintain the Company’s assets and the risk assessment is based upon international financial and technical standards in line with the Company’s risk management framework. The Internal Audit Department examines whether the existing procedures protect the accounting records against any unauthorized access or misuse and ensures application of the accounting policies and internal regulations and procedures developed by the Company in order to produce accurate financial reports. The Internal Audit Department completed the audits according to the audit plan. In this respect, the Department conducted an experimental examination of the accounts and documents of different offices, subsidiaries and branches. The objectives of the audits were fulfilled according to the audit plan, and recommendations were submitted to the audit committee to which the Department reports.

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Annual Report 2014

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