PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT External Audit and Internal Controls Independence of External Auditors The External Auditors serve a vital role in safeguarding shareholder interests by enhancing the credibility of the financial statements. They provide independent assurance on the reliability of the financial disclosures presented by the REIT. The Board Audit and Risk Committee (“BARC”) oversees the engagement of the External Auditors on behalf of the Board. In discharging this responsibility, the BARC reviews and evaluates the reappointment, remuneration, and independence of the External Auditors annually, including prior to any reappointment. The evaluation of the External Auditors is based on the following key criteria: • Competency, audit quality, and resource capacity; • Audit planning, process quality, and scope; • Effectiveness of audit communications; • Independence and objectivity; • Appropriateness of non-audit services and associated fees; • Written confirmation of independence in accordance with professional and regulatory requirements. These assessments are supplemented with input from the Head of Finance and form the basis of BARC’s recommendation to the Board regarding the appointment of External Auditors. The BARC holds regular meetings with the External Auditors to review the audit scope and discuss findings. At least twice a year, private sessions are conducted without Management’s presence to provide an avenue for open dialogue on any audit-related concerns. PRINCIPLE A: BOARD LEADERSHIP & EFFECTIVENESS (CONT'D) Gender Diversity and Inclusion (Cont'd) As at 31 December 2024, the Board composition and diversity is depicted below (Cont'd): Corporate Governance Overview Statement Age Tenure 60-69 2 70-75 50-59 6 40-49 Less Than 1 Year More than 6 Years More than 1 Year up to 6 Years 12% 88% 110 AL-SALĀM REIT ANNUAL REPORT 2024
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