Areas of Focus Matters Considered Recovery Plan ✓ Recommended to the Board the plan towards establishing the Bank’s Recovery Plan and reviewed the status report by the appointed consultant on the validation of Bank Islam’s recovery plan. Integrity & Governance ✓ Reviewed and deliberated on the updates on Corruption Risk Management Reports and recommended to the Board the implementation of Divisional Corruption Risk Management as well as the risk action plans. ✓ Reviewed and deliberated the Integrity & Governance Department Reports, which include reports on the investigation of fraud and whistleblowing cases. ✓ Reviewed and deliberated the development of Bank Islam’s Organisational Anti-Corruption Plan (OACP). ✓ Reviewed the updates on ISO 37001: 2016 Anti-Bribery Management System in Bank Islam. Corporate Secretarial ✓ Reviewed the governance status of Bank Islam and its Tier 1 subsidiaries against the relevant laws and guidelines relating to governance. ✓ Reviewed the report on Conflict of Interest. TRAINING AND DEVELOPMENT The BAEC members are individuals with a wide range of relevant skills, knowledge and industry experience which enable the members to discharge their duties effectively. The members bring with them diversity of experience and financial background. These factors enable the members of the BAEC to understand, analyse and challenge the Management on matters deliberated in the meeting including the financial reporting process and internal controls. The BAEC members are expected to devote sufficient time to update their knowledge and enhance their skills through appropriate continuing education programmes. During the year, the BAEC members attended several seminars and training conferences to keep abreast with the latest developments. Details of the seminars and training programmes attended by each Director in 2023 can be found in the Corporate Governance Report. PERFORMANCE REVIEW OF THE BAEC Based on the annual evaluation on the effectiveness of the Board, its Committees and the members of the Board, the Board is satisfied with the performance of the BAEC and its members. This is evidenced by the annual evaluation results where the BAEC recorded 80% score in the financial year 2023 assessment. The BAEC has discharged its duties in accordance with its Terms of Reference and in line with the requirements of MCCG, BNM CG Policy and MMLR. The results of the annual evaluation on the BAEC for the financial year 2023 can be found in the CG Report. RELATIONSHIP WITH THE EXTERNAL AUDITORS The Board maintains a transparent and professional relationship with the External Auditors through the BAEC. The BAEC reviews and assesses the suitability, objectivity and independence of the External Auditors annually. The appointment or re-appointment of the External Auditors is carried out in accordance with the requirements set out by Bank Islam to ensure the independence and objectivity of the External Auditors as statutory auditors are not compromised. The External Auditors also provide non-audit services to Bank Islam. For engagement of the External Auditors to perform non-audit services, the BAEC has to be satisfied that the External Auditors are suitable, independent and objective in the provision of such services, there is no element of conflict of interest and the fees chargeable are within the allowable threshold set. The BAEC was satisfied with the quality of audit, performance, competency and sufficiency of resources provided to Bank Islam by the External Auditors during the financial year under review. The BAEC was also satisfied that the provision of nonaudit services to Bank Islam by the External Auditors did not impair their objectivity and independence as External Auditors of Bank Islam. The amount of audit fees and non-audit fees paid by Bank Islam and the Group can be found on page 339 of Notes 33 of the Financial Statements. 228 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Board Audit & Examination Committee (BAEC) Report
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