GOVERNANCE AUDIT COMMITTEE REPORT (cont’d) SUMMARY OF ACTIVITIES UNDERTAKEN BY THE AC During FY2025, the AC diligently discharged its oversight responsibilities in accordance with MMLR of Bursa Securities, the MCCG, and Terms of Reference of the AC. The key activities undertaken included: Financial Reporting In overseeing the Group’s financial reporting process, the AC conducted detailed assessments of both the unaudited quarterly financial results and the annual audited financial statements (“Financial Reports”). These reviews were designed to verify strict adherence to Malaysian Financial Reporting Standards, International Financial Reporting Standards, and relevant regulatory guidelines. Prior to submission to the Board for approval, the AC engaged in thorough deliberations with Management and the External Auditors, scrutinising critical accounting policies, significant judgements, and key estimates to ensure the fairness, reliability, and completeness of the financial disclosures. This structures review process facilitated the timely and accurate submission of the Group’s financial statements to Bursa Securities, reinforcing the Group’s commitment to accountability and high standards of financial integrity. Annual Report The AC played a pivotal role in reviewing the Annual Report, ensuring that all disclosed components met regulatory expectations and best practices. This included an in-depth evaluation of the Audit Committee Report, Sustainability Statement, Corporate Governance Overview, Corporate Governance Statement, Corporate Governance Report, Directors’ Responsibility Statement, alongside the annual audited financial statements of the Group. Each section was examined for consistency, completeness, and alignment with Bursa Securities’ disclosure requirements and MCCG recommendations. Through this comprehensive review, the AC ensured that the Annual Report provided stakeholders with a transparent, accurate, and holistic view of the Group’s governance framework, financial performance, and sustainability initiatives. External Audit The AC exercised rigorous oversight of the external audit process throughout FY2025. Prior to commencement of the annual audit, the AC reviewed and approved the Audit Planning Memorandum presented by the external auditors, ensuring clear alignment between the proposed audit scope, objectives, and the Group’s operational and financial reporting requirements. This preliminary review enabled the AC to evaluate the appropriateness of the audit methodology, risk assessment, and materiality thresholds, while confirming coverage of all critical financial areas. During the audit cycle, the AC maintained regular engagement with the external auditors through structured progress updates. Notably, the AC held private sessions with the auditors, conducted without the presence of executive Board members and Senior Management. These exclusive sessions fostered open discussions on sensitive audit matters, emerging accounting issues, and potential areas of concern, thereby strengthening the quality and independence of the audit process. The AC conducted a thorough evaluation of the Audit Review Memorandum containing the auditors’ findings and observations. This included detailed examination of significant accounting judgements, key audit matters, and any internal control deficiencies identified during the audit process. The AC ensured that Management implemented appropriate and timely corrective actions for all material findings. In upholding the highest standards of audit independence, the AC performed its annual assessment of the external auditors’ objectivity, competence, and effectiveness. This evaluation considered the auditors’ technical expertise, resource allocation, audit quality indicators, and compliance with the Malaysian Institute of Accountants’ By-Laws on independence. The external auditors provided written confirmation of their independence throughout the engagement, which the AC verified through its own independent checks. Prior to recommending the auditors’ re-appointment to the Board, the AC conducted a rigorous review of the audit fees proposal, benchmarking them against industry standards to ensure they reflected the scope and complexity of the engagement. The AC satisfied itself that the proposed fees would not compromise audit quality or independence, and represented fair value for the Group. 183
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