THE BAEC ACTIVITIES IN 2021 Areas of Focus Matters Considered Internal Audit • R eviewed and approved the revised Internal Audit Plan and Budget for the Financial Year (FY) 2021 arising from the continued movement restriction and physical distancing requirement as per the Standard Operating Procedures (SOP) on COVID-19 pandemic. The number of audits performed for FY2021 were 143 (or 108%) against the approved revised audit plan of 133. 29 audits were performed due to regulatory requirements. • R eviewed and approved the 2022 Internal Audit Plan and Budget which includes the scope, procedures and frequency as well as adequacy and competency of internal audit resources. • Reviewed and approved the review of the Internal Audit Division Manual. • D eliberated 81 Internal Audit Reports on the Head Office, Regional Offices, the branches and identified critical units of BIMB, which amongst others focused on the effectiveness and adequacy of governance, risk management and internal control, audit rating and recommendations. • D eliberated 24 Internal Audit Reports on Information System Audit which assessed the adequacy of the information systemcontrols, security including cyber security and the necessary back-up systems to cover for contingencies or disaster. • Deliberated 11 Shariah Audit Reports on compliance with the Shariah rulings. • R eviewed the progress of rectification effort on unresolved audit findings to ensure appropriate corrective actions were taken by Management in a timely manner to address control weaknesses, policies and other areas identified by the Internal Auditors and other control functions. • R eviewed and noted the analysis and trend of audit rating and audit findings of branches from the FY2017 to FY2020. • R eviewed the updates by the Internal Audit on the state of internal controls for the second half of the FY2021. • R eviewed the performance and achievements of the Internal Audit Division for the FY2020 and the first half of the FY2021. • R eviewed and noted 34 investigation reports by Internal Audit Division which cover cases for staff negligence and potential disclosure of customers information. • R eviewed and noted the report by Internal Audit Division on verification of non-audit services fees incurred by external auditors. • R eviewed and noted the report from Institute of Internal Auditors Malaysia (IIAM) on External Quality Assessment Review (QAR) for BIMB’s Internal Audit Division. • Reviewed and noted the minutes of meeting of the Management Audit Committee. External Audit • R eviewed and deliberated the external auditor’s 2021 audit plan encompassing the audit approach, the areas of audit emphasis and audit fees. • Reviewed and deliberated the External Auditors reports on: (i) t he audited financial statements for the financial year ended 31 December 2020, which include the key focus area of the audit and internal control matters, on 22 January 2021; (ii) l imited reviewof the unaudited financial statements for the financial period ended 30 September 2021, on 25 October 2021; and (iii) t he audited financial statements for the financial year ended 31 December 2021, which include the key focus area of the audit and internal control matters, on 27 January 2022. • E valuated the independence and objectivity of the external auditor by reviewing the fees and the list of non-audit services provided by the external auditor. • R eviewed and recommended to the Board the re-appointment of external auditor. The BAEC’s evaluation was based on the performance, independence and suitability of the external auditors. It also covers the assessment on the external auditor’s ability in meeting BIMB’s requirements, business insights and ideas, service efficiency and effectiveness as well as value management. INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 189
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