2020 UEM Edgenta Annual Report

3. Reviewed the Circular to Shareholders in respect of the proposed shareholders’ mandate for recurrent related party transactions and proposed new mandate for additional recurrent related party transactions of a revenue or trading nature. 4. Reviewed and recommended the Corporate Governance Overview Statement, Corporate Governance Report, AC Report and Statement on Risk Management and Internal Control, to the Board for its approval. B. INTERNAL AUDIT 1. Reviewed and approved the Internal Audit Plan Year 2020, including changes for adequacy and appropriateness of coverages. The above included the risk-based planning methodology, high-level review scope and its manpower requirement for the proposed audit activities. 2. Reviewed the scope, functions, competency and resources of the Internal Audit Department (“IAD”) to ensure that it had the necessary independence and authority expected by the professional standards and applicable guidelines to carry out its work professionally and with impartiality and propriety. 3. Reviewed and deliberated the internal audit reports (planned and ad-hoc) and ensured that appropriate recommendations were discussed and agreed with Management and that timely remedial actions were taken by Management on gaps or lapses of controls or procedures identified by IAD. 4. Discussed with Internal Audit, their follow-up on corrective action taken by Management on audit issues to ensure that all the key risks and control lapses have been addressed on timely manner. 5. Reviewed and approved the IAD Scorecard. 6. Assessed and approved the appointment of new Head of Internal Audit. C. EXTERNAL AUDIT 1. Reviewed with the External Auditors: a. The audit plan, audit methodology and scope of work, especially on areas identified for audit focus for the year; b. T heir comments and issues arising from their annual audit, their audit report and management letter of comments on the group internal control; c. The key audit matters highlighted for inclusion in the audit report and the audit process in addressing them; and d. The Group’s financial reporting process including consolidation. 2. Assessed the objectivity, suitability and independence of the External Auditors in carrying out their audit during the year. 3. Evaluated the performance of the External Auditors and recommended their re-appointment to the Board of Directors. 4. Reviewed with the External Auditors on 19 November 2020 and 22 February 2021 without the presence of the Managing Director/Chief Executive Officer and Management, on any concerns/issues affecting their audit, the results of audit, including the level of cooperation rendered by Management in respect of their access to financial information and accounting records. ANNUAL REPORT 2020 135 1 2 3 4 5 6 7 8