KENANGA INVESTMENT BANK BERHAD 148 INTEGRATED ANNUAL REPORT 2025 AUDIT COMMITTEE REPORT At the request of the AC, Management had initiated the Request for Proposal (“RFP”) for appointment of External Auditors of KIBB Group in respect of the Financial Year Ending 31 December 2026 onwards in view of the long tenure that EY had been appointed as the External Auditors of KIBB Group. Six (6) audit firms, including EY, had been invited to participate in the RFP but only three (3) audit firms had reverted with their proposals. The outcome of the evaluation was tabled at the AC meeting held on 23 October 2025 for deliberation. Based on the overall evaluation, EY scored the highest among the three (3) audit firms, after considering EY’s experience in financial services and the strength of their audit team. Hence, the AC had recommended the proposed engagement of EY as the External Auditors of KIBB Group for the Financial Year Ending 31 December 2026 onwards for the Board of KIBB’s approval and the same was approved by the Board of KIBB at its meeting held on 30 October 2025. At the AC meeting on 23 January 2025, the AC had reviewed and recommended the revised Policy of Non-Audit/ Assurance Services by the External Auditor to the Board for approval, the same was approved by the Board of KIBB on 27 January 2025. Internal Audit At its meeting on 23 January 2025, the AC had reviewed and approved the 2025 Internal Audit Plan tabled by Group Internal Audit (“GIA”) after considering the adequacy of scope and comprehensiveness of the coverage of activities within KIBB Group, as well as the adequacy of resources in GIA. In 2025, the AC had reviewed and deliberated on a total of thirty-eight (38) Internal Audit Reports, together with the audit recommendations made by GIA and Management’s responses to those recommendations, in relation to the audits carried out by GIA. Where appropriate, the AC had directed Management to rectify and improve the control and workflow procedures based on GIA’s recommendations. 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 six (6) months and medium-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 2025, GIA also conducted various regulatory required reviews in areas including amongst others, Management of Customer Information, 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 23 January 2025 had taken note of GIA’s Annual Confirmation on Organisational Independence of Internal Audit Activity for the Financial Year 2024 in line with the International Standards for Professional Practice of Internal Auditing (Standards – 1110) and the Group Internal Audit’s Environment, Social and Governance Assurance Framework. For the purpose of evaluating the performance of the GCIA, the AC had at its meeting on 23 January 2025, reviewed and deliberated on the GCIA’s 2024 Performance Appraisal and 2025 Balanced Scorecard, prior to submission of the same to the GNC for its further recommendation to the Board of KIBB for approval. The AC’s recommendation on the GCIA’s 2024 Performance Appraisal and 2025 Balanced Scorecard were subsequently approved by the Board of KIBB on 4 March 2025. f g a b 3.3 c d e
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