121 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION AUDIT COMMITTEE REPORT The AC, at all its quarterly meetings, also reviewed the implementation status of the corrective actions arising from the audit recommendations to ensure that the key risks and control lapses were addressed adequately and in a timely manner. With regard to long outstanding audit recommendations, where appropriate, the relevant Heads of Department were invited to the AC meeting to provide relevant explanation for the delay in implementing such audit recommendations. In ensuring timely implementation of audit recommendations, the Company, under its Performance Management Framework, had introduced a demerit system for any delay in implementing high-risk audit recommendations of more than twelve (12) months. In addition to the audit conducted on the processes and systems of Support and Business Units within KIBB Group, during the Financial Year 2023, GIA also conducted various regulatory required reviews in areas including amongst others, AntiMoney Laundering/ Counter Financing of Terrorism, Basel II (Pillar 3), Related Party Transactions, Verification of RM Marketable Securities, Staff Training Fund, Federation of Investment Managers Malaysia (“FIMM”) Annual Compliance Review Checklist for Kenanga Investors Berhad and FIMM Annual Compliance Review Checklist for KIBB. The AC at its meeting on 30 January 2023 had taken note of GIA’s Annual Confirmation on Organisational Independence of Internal Audit Activity for the Financial Year 2022 in line with the International Standards for Professional Practice of Internal Auditing (Standards – 1110). At the aforesaid meeting, the AC had also taken note of GIA’s verification of KIBB’s rectification measures on Anti-Money Laundering/ Counter Finance Terrorism Controls and Processes arising from BNM’s Composite Risk Rating 2021. For the purpose of evaluating the performance of the GCIA, the AC had at its meeting on 30 January 2023, reviewed and deliberated on the GCIA’s 2022 Performance Appraisal and 2023 Balanced Scorecard, prior to submission of the same to the Group Governance, Nomination & Compensation Committee (“GNC”) for its further recommendation to the Board of KIBB for approval. The revised 2023 Balanced Scorecard incorporating the feedback provided by the AC, was recommended to the GNC for the latter’s further recommendation to the Board of KIBB for approval by the AC at its meeting held on 30 January 2023. The AC’s recommendation on the GCIA’s 2022 Performance Appraisal and 2023 Balanced Scorecard were subsequently approved by the Board of KIBB on 31 January 2023. The AC had also at its meeting on 23 February 2023, deliberated on the GCIA’s Individual Development Plan (“IDP”). The updated IDP of the GCIA incorporating the feedback received from the AC members was subsequently approved by the AC at its meeting held on 30 March 2023. Progress update on the implementation of the IDP had also been provided to the AC. The AC at its meeting on 24 October 2023, had taken note of the Risk Heat Map established by GIA to complement the current annual audit risk assessment for better clarity on the selection of audits to be conducted as recommended by the Institute of Internal Auditors Malaysia, as part of the External Quality Assessment Review conducted on GIA in 2021. Arising therefrom, the “risk-factor approach” was adopted to develop the risk heat map for the Internal Audit Plan for the Financial Year 2024 and thereafter. At the aforesaid meeting, the AC had also taken note of the results of the Internal Quality Assessment Review, being part of GIA’s Quality Assurance and Improvement Programme to assess the Internal Audit activity’s conformance with the Internal Audit Standards for the Internal Audit Governance (Pillar 1) and Internal Audit Process (Pillar 4). The AC, at all of its quarterly meetings also reviewed and noted the confirmed minutes of meetings of the Audit & Risk Committee of Kenanga Investors Berhad and the Group Outsourcing & Procurement Committee. c d e f g h
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