163 GOVERNANCE REPORT ON AUDIT COMMITTEE INTERNAL AUDIT FUNCTION The Group’s IA function is carried out via a cosourcing engagement between the Group’s in-house IA Department and EY. The IA function assists AC in its duties and responsibilities and is free from any relationships or conflicts of interest, thus retaining its objectivity and independence. IA Department and EY report directly to the AC on the adequacy and effectiveness of the Group’s internal controls and area of improvement opportunities. The AC is aware that an independent and adequately resourced IA function is essential to obtain assurance on the effectiveness and efficiency of the system of internal control. b) Financial Reporting • Reviewed the unaudited quarterly financial results of the Group, prior to its release to Bursa Malaysia; • 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 annual internal audit plan; • Reviewed and approved adoption of Internal Audit Engagement Roadmap and Internal Audit Engagement Ecosystem • 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 four (4) private sessions with internal auditors in March, June, September and December 2022 respectively, without the presence of Executive Directors and/or Management; • Reviewed the reports prepared by the internal auditors on the state of internal control and efficiency of the audited coverage scope of the Group; • Monitored the outcome of the audits and follow-up audits conducted to ascertain all agreed action plans were adequately implemented; and • Assessed the performance of the IA function and reviewed its effectiveness in the audit process. d) External Audit • Discussed with the external auditors the annual audit plan, nature and scope of audit as well as audit procedures, prior to the commencement of audit; • Conducted two (2) private sessions with external auditors in March 2022 and September 2022 respectively, without the presence of Executive Directors and/or Management; • Reviewed the external auditors’ audit findings for the financial year under review; • Reviewed with the external auditors the SORMIC of the Group for inclusion in the Annual Report; and • Reviewed the overall performance of the external auditors, including assessment of their independence, technical competency, resources and reasonableness of their audit fees and nonaudit fees. e) Other matters • Prepared Report on AC for the Board which includes the composition of the AC, the reference to its terms of reference, number of meetings held, a summary of its works and a summary of the works of the Internal IA function for inclusion in the Annual Report; • Reviewed and monitored the Recurrent Related Party Transactions; and • Reviewed and recommended the dividend payout.
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