The Board is pleased to present the Audit Committee (“AC”) Report, outlining how the AC carried out its functions and responsibilities for the financial year ended 31 December 2024. The AC supports the Board in overseeing the Company’s financial reporting and ensuring the fulfillment of its fiduciary responsibilities concerning internal controls. This includes monitoring the proper maintenance of financial and accounting records, establishing policies, and upholding financial reporting practices for the Group. Additionally, the AC also reviews related party transactions and potential conflict of interest situations that may arise within the Group. COMPOSITION AND MEETING ATTENDANCE The composition of the AC and meeting attendance for financial year 31 December 2024 are available in page 230 of the Corporate Governance Overview Statement. SUMMARY OF ACTIVITIES OF THE AC During the year, the Chairman of AC met the Head of Internal Audit regularly and had pre-meeting discussions of their activities and reports. In line with the terms of reference of the AC, the following works were carried out by the AC during the financial year ended 31 December 2024:- A. FINANCIAL STATEMENTS AND CORPORATE GOVERNANCE 1. Reviewed the quarterly and annual financial statements of the Company and of the Group; and recommended them for Board’s approval, focusing particularly on:- a) appropriateness and relevance of accounting policies and practices adopted and their application in compliance with current accounting standards; b) any significant non-recurrent or unusual transactions made or events occurred during the year; c) any significant changes to the basis of preparation of the financial statements or new accounting standards adopted during the year which impacted the result or financial position of the Group; d) the going concern assumption used in the preparation of the financial statements; e) significant accounting and auditing matters including financial reporting issues, estimates or judgements made by Management, unusual events or transactions, and how these matters are addressed; and f) compliance with financial reporting standards and other regulatory requirements. 2. Reviewed related party transactions and recurrent related party transactions of a revenue or trading nature which are necessary for the day-to-day operations in the ordinary course of business of the Company and its subsidiaries to ascertain as to whether they are undertaken on an arm’s length basis on normal commercial terms not more favourable to the related parties than those generally available to the public or those extended to unrelated parties and are not detrimental to the minority shareholders. 3. Reviewed and recommended the Circular to Shareholders in respect of the proposed shareholders’ mandate for recurrent related party transactions and proposed new mandate for additional recurrent related party transactions of a revenue or trading nature, to the Board for its approval. 4. Reviewed and recommended the Corporate Governance Overview Statement, Corporate Governance Report, AC Report and Statement on Risk Management and Internal Control, to the Board for its approval. B. INTERNAL AUDIT 1. Reviewed the scope, functions and resources of the Internal Audit Department (“IAD”) to ensure that it had the necessary competency, independence and authority expected by the professional standards and applicable guidelines to carry out its work professionally and with impartiality and propriety. 2. Reviewed and deliberated the internal audit reports (planned and ad-hoc) and ensured that audit observations and appropriate recommendations were discussed and agreed with Management including timelines set to be taken for remedial actions on gaps or lapses of controls or procedures identified by IAD. 3. Reviewed the status of implementation, effectiveness, and adequacy of Management’s corrective actions through follow-up audit reports to ensure all key risks and control issues were addressed adequately and in a timely manner. 4. Reviewed and approved the Internal Audit Plan, including changes for adequacy and appropriateness of coverages, as well as the risk-based planning methodology, high-level review scope and its manpower requirement for the proposed audit activities. 5. Assessed and approved the performance rating of IAD and the IAD Scorecard. 6. Suggested additional improvement opportunities in the areas of internal control, systems and operational efficiency. UEM EDGENTA BERHAD 242 Integrated Annual Report 2024 Audit Committee Report
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