UEM EDGENTA BERHAD Integrated Annual Report 2025 240 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 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, for the Board approval. 4. Reviewed and recommended the Corporate Governance Overview Statement, Corporate Governance Report, AC Report and Statement on Risk Management and Internal Control, for the Board 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. C. EXTERNAL AUDIT 1. Reviewed with the External Auditors:- a) The audit plan, audit methodology and scope of work, especially on areas identified for audit focus for the year; b) Their comments and issues arising from their annual audit, their audit report and management letter of comments on the group internal control; c) The key audit matters highlighted for inclusion in the audit report and the audit process in addressing them; and d) The Group’s financial reporting process included consolidation. 2. Assessed the objectivity, suitability and independence of the External Auditors in carrying out their audit during the year. 3. Discussed/scheduled with the External Auditors on 24 February 2025 and 20 November 2025 without the presence of the Managing Director/Chief Executive Officer and Management, on any concern/issues affecting their audit, the results of audit, including the level of cooperation rendered by Management in respect of their access to financial information and accounting records. 4. Evaluated the performance of the External Auditors and recommended their re-appointment to the Board of Directors based on their satisfactory performance via feedback received from the assessment questionnaires and the 2025 Annual Transparency Report. 5. Reviewed and recommended the audit fees for the Board’s approval. AUDIT COMMITTEE REPORT
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