KENANGA INVESTMENT BANK BERHAD 146 INTEGRATED ANNUAL REPORT 2025 AUDIT COMMITTEE REPORT Financial Reporting In discharging its role and responsibility pertaining to the Company’s financial reporting, the AC had at its meeting held on 23 January 2025, reviewed the quarterly financial statements for the quarter ended 31 December 2024, as well as the Audited Financial Statements in respect of the Financial Year Ended 31 December 2024. In reviewing the Audited Financial Statements, the AC discussed with Management and the External Auditors, significant accounting matters including significant judgment and estimates applied that might affect the financial statements. The AC also deliberated on audit issues and key audit matters raised by the External Auditors and the action plans required to address those issues, based on the External Auditors’ recommendations. The subsequent quarterly financial statements for the quarters ended 31 March 2025, 30 June 2025 and 30 September 2025 were tabled and reviewed by the AC at its quarterly meetings held on 22 April 2025, 24 July 2025 and 23 October 2025 respectively, upon which the AC had recommended the quarterly financial statements to the Board for approval. The AC had at its meeting held on 23 October 2025, reviewed the impairment approach and the assumptions used in the annual assessment for impairment of assets of KIBB and Its Subsidiaries (“KIBB Group”) to be adopted for the Financial Year Ended 31 December 2025 and recommended the same for the Board’s approval. At each of its quarterly meeting, the AC was also notified of the amount of non-audit fees incurred and paid by KIBB Group to the External Auditors and their affiliate to ensure compliance with the Group’s Policy on Non-Audit Services by External Auditors. 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 2024 was reviewed and deliberated by the AC at its meeting held on 23 January 2025. During its deliberations, the AC was briefed by the External Auditors on the various areas of audit emphasis, including Management’s assessment, EY’s audit emphasis, independent assessment and conclusion made for each of the identified areas. EY’s audit emphasis included the measurement and recognition of Expected Credit Loss, impairment assessment, valuation of unquoted investments, technology risk and cybersecurity, as well as recognition of revenue, taxation and deferred taxation. 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 26 February 2025, 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 2024. The AC had, at the same meeting, duly deliberated on the audit matters which required its attention. 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 the internal controls and procedures. SUMMARY OF THE AC’S ACTIVITIES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 3. a c a b b c d 3.1 3.2
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