REPORT ON AUDIT COMMITTEE The Board is pleased to present the Report on AC for FYE 2022 in accordance with Paragraph 15.15 of the Bursa Securities Main Market Listing Requirements. SUMMARY OF WORK PERFORMED In FYE 2022, the AC carried out its duties in accordance with its Terms of Reference and the activities are summarised as follows: a) Risk Management and Internal Control • Reviewed the adequacy and effectiveness of the Group’s risk management, internal control system and management information system; • Reviewed the extent of compliance with established internal policies, standards, plans, procedures, laws and regulations; • Recommended to the Board steps to improve the system of internal control derived from the findings of the internal and external auditors; and • Discussed and reviewed key risk profile. b) Financial Reporting • Reviewed the unaudited quarterly financial results of the Group, prior to its release to Bursa Securities; • Reviewed the annual audited financial statements of the Group together with external auditors’ report, audit memo and management’s response; and • Reviewed the application of major accounting policies and practices to ensure that the Group’s financial statements had been prepared in compliance with approved accounting standards. c) Internal Audit • Reviewed and approved the proposed revisions to the Internal Audit Charter; • Re-appointed EY to co-source with the in-house IA department for the IA function; • Reviewed and approved the annual internal audit plan; • Reviewed and approved the Group Internal Audit’s staffing requirements and budget to ensure adequacy of resources and competencies of the department; • Discussed with the internal auditors on its scope of work, functions, adequacy and competency of resources and co-ordination with external auditors; • Conducted three (3) private sessions with internal auditors in March, June and December 2021 respectively, without the presence of Executive Directors and/or Management; • Reviewed the reports prepared by the internal auditors on the state of internal control of the Group; • Monitored the outcome of the audits and follow-up audits conducted to ascertain all action plans were adequately implemented to address the key risks; and • Assessed the performance of the IA function and reviewed its effectiveness in the audit process. TERMS OF REFERENCE The AC is formally constituted within the AC Terms of Reference, available on the Company’s website at www.yinson.com. COMPOSITION AND MEETINGS The AC comprises Independent Non-Executive Directors, with all members having working familiarity with basic corporate finance and accounting practices. AC Chairman, Dato’ (Dr.) Wee Hoe Soon @ Gooi Hoe Soon, is a member of the Malaysian Institute of Accountants. AC meetings are scheduled at least four (4) times a year with additional meetings scheduled as necessary. The AC met five (5) times in FYE 2022 as follows: Dato’ (Dr.) Wee Hoe Soon @ Gooi Hoe Soon Chairman, Senior Independent Non-Executive Director Date of appointment: 11 August 2016 No. of meetings attended: 5/5 (100%) Raja Datuk Zaharaton binti Raja Zainal Abidin Member, Independent Non-Executive Director Date of appointment: 11 August 2016 No. of meetings attended: 5/5 (100%) Datuk Abdullah bin Karim Member, Independent Non-Executive Director Date of appointment: 16 October 2018 No. of meetings attended: 5/5 (100%) Dato’ Mohamad Nasir bin Ab Latif Member, Independent Non-Executive Director Date of appointment: 1 October 2020 No. of meetings attended: 5/5 (100%) AC meeting notices, reports and papers, wherever possible, are uploaded to a digital meeting software and disseminated to AC members at least seven (7) days before meetings, providing the AC with relevant facts and analyses to facilitate effective discussion and decision-making processes. At the meetings, the AC reviews risk management and internal control, financial reporting, business and corporate proposal, internal and external audit functions within the Group. Minutes of meetings are duly recorded by the Corporate Secretary. To avoid conflict of interests, AC members are required to declare interests that they may have in the matters arising during meetings. AC member who has conflict of interests will be excluded from deliberations and decision-making in such matters, and will also abstain from voting on the related resolutions at AC/Board/general meetings of the Company. 205 ANNUAL REPORT 2022 GOVERNANCE
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