SECTION 07 pg. 172 AL-SALĀM REIT INDEPENDENCE OF EXTERNAL AUDITORS The External Auditors play an essential role to the unitholders by enhancing the reliability of the financial statements and giving such reliability assurance to users of these financial statements. The BARC manages the relationship with the External Auditors on behalf of the Board. The BARC reviews and considers the re-appointment, remuneration and annually assessed the independence and objectivity of the external auditors during the year and before any appointment of the external auditors. The evaluation process involving the track record and prior performance of the external auditor’s centres around the areas below: • The competency, audit quality, and resource capacity of the external auditor in relation to the audit; • Quality of the audit process, scope and planning • Effectiveness of the audit communications • Auditors’ independence and objectivity • The nature and extent of the non-audit services rendered and appropriateness of the level of fees; • Written assurance from the external auditors confirming that they are, and have been, independent throughout the conduct of the audit engagement following the terms of all relevant professional and regulatory requirements. The results of these assessments formed the basis of the BARC’s appointment of External Auditors. The assessment takes into account the feedback from the Management, focusing on a range of factors that are considered relevant to audit quality. The BARC meets with the External Auditors regularly to discuss their audit plans and audit findings in relation to the financial statements. Private sessions between the BARC and the External Auditors were held without the presence of Management at least twice a year to discuss any other matters the external auditors may wish to highlight and to ensure that there were no restrictions in the scope and performance of their audit activities. In addition, the External Auditors are invited to attend the Annual General Meeting and be available to answer unitholders’ inquiries on the conduct of the statutory audit and preparation of their audit report. The External Auditors have confirmed their independence and that no circumstances and relationship create threats to their independence and that the ethical requirements have been complied with. The BARC was satisfied with the independence of the present external auditor based on the quality of audit, performance, competency, and sufficiency of the resources that the Internal Auditor provided to the REIT. Principle B EFFECTIVE AUDIT AND RISK MANAGEMENT CORPORATE GOVERNANCE OVERVIEW STATEMENT
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