KENANGA ANNUAL REPORT 2023

119 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION AUDIT COMMITTEE REPORT External Audit The report by the External Auditors on the statutory audit of the financial statements of KIBB and KIBB Group for the Financial Year Ended 31 December 2022 was reviewed and deliberated by the AC at its meeting held on 30 January 2023. During its deliberations, in addition to the relevant disclosures in the Audited Financial Statements, the AC had also considered the recommendations made by the External Auditors towards enhancing internal controls and procedures. The AC had also at the same meeting reviewed the list of services provided by the External Auditors during the financial year which comprised audit and regulatory-related services, issuance of a written communication to Management and the AC pertaining to the External Auditors’ audit/ findings, together with the recommendations for improvements in controls and procedures. The External Auditors’ services also included the review of the Statement on Risk Management and Internal Control, as well as other regulatory submissions as required under the various regulatory requirements. At its meeting held on 23 February 2023, the AC was updated by the External Auditors, on the latest status of the statutory audits conducted on KIBB Group in respect of the Financial Year Ended 31 December 2022. The AC had, at the same meeting, duly deliberated on the audit matters which required its attention. Pursuant to Section 67(1) of the Financial Services Act 2013, an auditor appointed by a licensed person shall meet the qualification criteria set out in BNM’s Policy Document on External Auditor and shall continue to meet the criteria throughout the audit engagement. In addition, BNM’s letter dated 3 May 2012 on “Supervisory Expectations on AC Pertaining to the Appointment/ ReAppointment of External Auditors” also sets out the areas of assessment to be performed. Being a licensed financial institution under the Financial Services Act 2013, the Company is required to undertake an annual assessment on areas focusing on performance and independence of External Auditors. In relation to the audit of the Company’s financial statements for the Financial Year Ended 31 December 2022, the External Auditors had given a written assurance to the AC that they were independent in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Code of Ethics for Professional Accountants (including International Independence Standards), throughout their audit engagement for 2022. This written assurance by the External Auditors was contained in the External Auditors’ Report which was presented to the AC on 30 January 2023. Following the implementation of the requirement for Annual Transparency Reporting by the SC’s Audit Oversight Board and in line with the MCCG’s criteria to guide decisions on the appointment and re-appointment of the External Auditors, the 2022 Transparency Report issued by EY was presented to the AC on 30 January 2023. After taking into consideration the assessment carried out by Management and the 2022 Transparency Report, the AC at the same meeting, had concluded that the External Auditors had fulfilled all the qualification criteria set out in BNM’s Policy Document on External Auditor in terms of its performance and independence and had therefore, recommended the re-appointment of EY as the Company’s External Auditors for the Financial Year Ending 31 December 2023 to the Board for approval. 3.2 a b c d

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