Internal Audit at KingJims Logistics Limited

The Internal Auditing department at KingJims Logistics Limited operates as an independent entity, reporting directly to the Board of Directors. Under the guidance and supervision of the Board of Directors and the Board Audit Committee, the Internal Auditing department is entrusted with the crucial responsibility of conducting internal audits.

The Purpose of Internal Audit

The primary objective of our Internal Audit function is to provide valuable assistance to the Board of Directors and management. This assistance comes in the form of scrutinizing and evaluating the effectiveness of our internal control systems. Our mission is to identify and address any deficiencies in these systems and, in doing so, enhance the efficiency of our operations. Our findings and recommendations for improvement are delivered in a timely manner to promote operational performance.

Structure of the Auditing Department

Our Auditing department consists of one Chief Internal Auditor, who is carefully selected and approved by the Board of Directors. Additionally, we employ a suitable number of full-time internal auditors to ensure comprehensive audit coverage.

Operational Procedures

In accordance with KingJims Logistics Limited’s Corporate Governance Principles, established and approved by the Board of Directors, the appointment, dismissal, evaluation, review, salary, and compensation of internal auditors are presented to the Board Chairman by the Chief Auditor for approval. The Internal Auditing department formulates annual audit plans based on the results of risk assessments, which are subject to approval by the Board of Directors. This structured approach ensures that our audits are tailored to address the most critical areas of concern. The outcomes of our audit investigations are compiled into comprehensive reports and submitted to the Board Audit Committee and the Board of Directors for their review. Additionally, our audit findings are subject to quarterly review by independent directors. Our Auditing department remains adaptable to changing business environments. This adaptability includes reviewing and revising the design of our internal control systems and assessing the self-inspection reports submitted by all company departments and subsidiaries. The objective is to sustain the operating effectiveness of our internal control systems, ensuring that we meet the highest standards of governance and efficiency.