SUMMARY OF THE ACTIVITIES OF AC cont’d (2) External Audit cont’d (b) Carried out annual assessment on the performance, suitability, capabilities and independence of the External Auditors based on amongst others, the External Auditors’ competency and audit independence, objectivity and professional skepticism before recommending to the Board their re-appointment and remuneration. The AC also considered the External Auditors’ Transparency Report in the review. To ensure that the External Auditors’ independence is not impaired, the Audit Engagement Partner in charge of the Company is changed every seven (7) years and is required to observe a cooling-off period of five (5) years before being re-appointed, which is in line with the recommendation by the MIA. Internally, the External Auditors conduct an Independent Partner Review in order to preserve their independence. The external Auditors had also provided written assurance to the AC that in accordance with the terms of all relevant professional and regulatory requirements, they had been independent throughout the audit engagement. For the FYE 2022, there was a change in the Audit Engagement Partner in charge. (c) Had private sessions with the External Auditors during the financial year, i.e. on 22 February 2022 and 25 November 2022 respectively without the presence of any executive Board members and Management to ensure there were no restrictions on their scope of audit and to discuss any matters that the External Auditors did not wish to raise in the presence of the Management. During the private session with the External Auditors, it was noted that there were no major concerns from the External Auditors and they had been receiving full cooperation from the Management during their course of audit. (d) Reviewed the audit and non-audit fees and recommended to the Board for approval. (e) At the meeting held on 23 February 2023, the Audit Committee reviewed and discussed with the External Auditors the status of the audit for the financial year ended 31 December 2022 including the issues arising from their audit of the annual financial statements and their resolution of such issues as highlighted in their report to the AC. (3) Internal Audit (a) At the meeting held on 22 February 2022, the AC reviewed the adequacy of the scope, functions, competency and resources of the internal audit function to ensure its effectiveness and efficiency. (b) Reviewed and approved the Internal Audit Plan for 2022 to ensure adequate scope and comprehensive coverage over the activities of the Company and the Group. (c) Reviewed and discussed the findings on the internal audit reports which were tabled during the year, the audit recommendations made as well as the Management’s response to these recommendations and the implementation of the agreed action plan on a quarterly basis. (d) Monitored the implementation of mitigating actions taken by Management on outstanding issues to ensure all key risks and control weaknesses are properly addressed. (e) Met with the Internal Auditors, both outsourced and in-house on 22 February 2022 and 25 November 2022 respectively without the presence of any executive Board members and the Management for discussion on internal audit related matters. AUDIT COMMITTEE REPORT Cont’d ANNUAL REPORT 2022 68
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