AUDIT COMMITTEE REPORT GOVERNANCE SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE The Chairman of AC reports to the Board at each Board meeting on the activities carried out by the AC in discharge of its duties and responsibilities. The major work undertaken by the AC during the financial year were as follows: 1. FINANCIAL REPORTING (i) Reviewed the quarterly unaudited financial results of the Group and the Company including the announcements pertaining thereto, before recommending to the Board for approval and release the results to Bursa Securities; (ii) Reviewed the annual audited financial statements of the Group and the Company, together with the external auditors, before recommending the same to the Board for approval; (iii) Reviewed the impact of changes in accounting policies and adoption of new accounting standards, together with significant matters highlighted in the financial statements; (iv) Reviewed related party transactions and conflict of interest situation that may arise within the Group and/or Company, to ensure that transactions entered into were on arm’s length basis and on normal commercial terms; and (v) Report to the Board on its activities and significant findings and results. 2. EXTERNAL AUDIT (i) R eviewed the External Auditors' reports regarding audit and accounting issues stemming from the audit, as well as updates on new developments in accounting standards issued by the Malaysia Accounting Standard Board prior to submission to the Board for approval. The review was to ensure the financial reporting and disclosures requirements are in compliance with the relevant rules and regulations; (ii) R eviewed the Audit Planning Memorandum for FY2025 and thereafter recommended the same to the Board for notation and approval; (iii) Reviewed and discussed with the external auditors of their audit findings inclusive of system evaluation, audit fees, issues raised, audit recommendations and management response to these recommendations; (iv) E valuated the performance of the external auditors for FY2025 covering areas such as calibre, quality processes, audit team, audit scope, audit communication, audit governance and independence and considered and recommended the re-appointment of the external auditors; (v) R eviewed and approved the non-audit services provided/to be provided by the External Auditors and its affiliates to ensure the provision of the non-audit services does not impair their independence or objectivity as External Auditors of the Group and the Company; (vi) R eviewed the Statement on Risk Management and Internal Control before recommending to the Board for approval and inclusion in the Annual Report; and (vii) Reviewed the proposed fees for the External Auditors in respect of their audit and non-audit of the Company and the Group. The Company has appointed UHY Malaysia PLT as the Auditor of the Company to conduct the external audit for FY2025. 3. INTERNAL AUDIT (i) Discussed with the internal auditors and reviewed the overall adequacy, competency and effectiveness of the system of internal controls; (ii) R eviewed and approved the Internal Audit Plan during the first AC meeting each year to ensure adequacy of resources, competencies and coverage of auditable entities with significant and high risks. Any subsequent changes to the Internal Audit Plan are approved by the AC; (iii) Reviewed and assessed the adequacy of scope, functions and resources of the firm of internal auditors (that was engaged to undertake the internal audit function) and that it has the necessary authority to carry out its work; (iv) Reviewed the major findings of internal audit, areas required improvements, management’s response, and ensure that appropriate actions are taken on the recommendations of the internal audit function; and (v) R eviewed the proposed fees for the Internal Auditors in respect of their audit of the Company and the Group. DESTINI BERHAD ANNUAL REPORT 2025 78
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