SUMMARY OF ACTIVITIES UNDERTAKEN BY THE AC (CONT’D) External Audit (cont’d) The AC thoroughly examined the external auditors’ report concerning audit and accounting issues arising from the audit process. Additionally, the AC engaged in discussion with the external auditors during meetings specifically convened without the presence of the executive Board members and Senior Management. These sessions facilitated candid dialogues on matters identified during the audit, ensuring a robust exchange of insights and resolutions to enhance the Group’s financial reporting integrity. The AC conducted a comprehensive assessment of the external auditors’ independence, suitability, objectivity, and effectiveness in carrying out their audit responsibilities. The AC received assurance from the external auditors that they remained independent throughout the audit engagement for FY2023, in full compliance with professional and regulatory requirements. This assurance underscored the AC’s commitment to ensuring the integrity and credibility of the audit process. The AC carefully evaluated the re-appointment of external auditors and their proposed audit fees, considering factors such as independence, objectivity, and the cost effectiveness of their services to safeguard the integrity of the audit process and ensure value for the Group prior to recommending re-appointment to the Board for approval. Internal Audit The AC diligently reviewed internal audit reports which outlined the recommendations for addressing areas of weakness within the Group. Additionally, the AC ensured that robust management action plans were established for the implementation of internal auditors’ recommendations. This rigorous oversight process facilitated continuous improvement and risk mitigation across the organization. The AC scrutinized the internal audit plan prepared by the outsourced internal auditors to ensure its adequacy in scope and comprehensive coverage of Group activities. Special attention was given to ensuring that all risk areas were audited annually, aligning with best practices in risk management and governance. The AC’s involvement in reviewing the audit plan contributed to the effectiveness of internal audit processes and enhanced assurance over risk management practices. The AC conducted a thorough evaluation of the scope, function, resources, and effectiveness of the outsourced internal auditors to ensure they discharged their functions and responsibilities with efficiency and integrity. This assessment encompassed a review of internal audit activities. By ensuring the adequacy and effectiveness of internal audit functions, the AC reinforced the Group’s commitment to sound internal controls and governance practices. Related Party Transactions The AC reviewed related party transactions entered into by the Group every quarter to ensure that the transactions entered into were on arm’s length basis and normal commercial terms, and to safeguard the interest of minority shareholders. Through thorough examination and clarification, the AC ensured that these transactions were conducted in accordance with regulatory requirements and corporate governance standards. This proactive oversight served to mitigate potential conflicts of interest and promote transparency and fairness in the Group’s dealings with related parties. Conflict of Interest Effective 1 July 2023, in accordance with the amended Main Market Listing Requirements regarding Conflict of Interest, the AC has expanded its mandate to include the review, monitoring, and mitigation of any conflict of interest disclosures by the Key Person within the Group such as directors, key senior management, and legal representatives. In conjunction with the amended Main Market Listing Requirements of Bursa Securities, the AC diligently reviewed the conflict of interest policy and recommended it to the Board for approval. The conflict of interest policy was adopted by the Board on 28 February 2024. The policy outlines circumstances that may constitute or give rise to conflicts of interest, disclosure requirements, management procedures, and record maintenance for disclosed conflicts of interest. Additionally, the Company practices quarterly disclosure, and the AC reviews any disclosed conflicts of interest. Findings or mitigation plans, if any, are reported to the Board for deliberation and approval. AUDIT COMMITTEE REPORT (cont’d) 152 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K)
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