MKH Berhad 61 PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. AUDIT COMMITTEE 1. Composition of Audit Committee The Audit Committee comprised of three (3) members, all of whom are Independent Non-Executive Directors. The Chairman of the Audit Committee, En. Jeffrey bin Bosra is a member of the Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Accountants (“MIA”). The other members of the Audit Committee are Datuk Mohammad bin Maidon and Dato’ Lim Hong Shuan. 2. Relationship with Auditors T he Company’s independent external auditors fill an essential role for the shareholders by enhancing the reliability of the Company’s financial statements and giving assurance of that reliability to users of these financial statements. T he Board through the Audit Committee maintains a transparent and professional relationship with the external auditors. The external auditors will communicate to the Audit Committee and the Board when they become aware of any significant weaknesses in the Company’s system of internal control, including fraud, during the course of their audit that may require the attention of the Audit Committee and the Board. The role of the Audit Committee in relation to the external auditors is set out on pages 65 to 72. F or the financial year under review, the external auditors had attended all the Audit Committee meetings and general meeting of the Company and had five (5) meetings with the Audit Committee without the presence of any Executive Director and management, to discuss the audit findings and any other observations they may have during the audit process. T he external auditors have also confirmed that they are, and have been, independent throughout the conduct of the audit engagement in accordance with the independence criteria as set out by the MIA By-Laws and have provided the declaration in their annual audit plan presented to the Audit Committee of the Company. T he Audit Committee together with the Chief Financial Officer had undertaken an annual assessment of the competency and independence of the external auditors pursuant to the External Auditors Assessment Policy, which has outlined the guidelines and procedures for the assessment on the suitability of the external auditors on 29 December 2021. T he Board, on the recommendation of the Audit Committee, is of the view that the declaration of independence, integrity and objectivity made by the external auditors in their audit report for each financial year under review is sufficient to serve as a written assurance from the external auditors on their independence and integrity throughout the conduct of the audit engagement in accordance with the independence criteria as set out by MIA By-Laws, has recommended their re-appointment to the Board, upon which the shareholders’ approval will be sought at the AGM. T he details of the External Auditors Assessment Policy are available for reference at www.mkhberhad.com. Corporate Governance Overview Statement
RkJQdWJsaXNoZXIy NDgzMzc=