ANNUAL REPORT 2021 125 GOVERNANCE CORPORATE GOVERNANCE STATEMENT (CONT’D) A. BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) III. Remuneration (cont’d) The details of the remuneration of the five (5) Senior Management (on named basis) for the FY2021 had been disclosed in the CG Report for FY2021. A copy of the Directors and Senior Management’s Remuneration Policy can be found on the Group’s website at https://www.myeg.com.my/investor-relations/governance. B. EFFECTIVE AUDIT AND RISK MANAGEMENT I. AC The current AC consists of two (2) Independent Non-Executive Directors and one (1) Non-Independent NonExecutive Director, and all of them are financial literate and have sufficient understanding of the Group’s business. All the members of the AC undertook continuous professional development to keep abreast of relevant developments in accounting and auditing standards, practices and rules. The composition of the AC is presented in the AC Report on page 128 of this Annual Report. The Chairman of the AC is not the Chairman of the Board, ensuring that the impairment of objectivity on the Board’s review of the AC’s findings and recommendation remains intact. The AC has adopted a Terms of Reference which sets out its goals, objectives, duties, responsibilities and criteria on the composition of the AC which includes a former key audit partner of the Group to observe a cooling-off period of at least three (3) years before being able to be appointed as a member of the AC. In presenting the annual audited financial statements and interim financial statements on a quarterly basis to the shareholders, the Board is responsible to present a clear, balanced and understandable assessment of the Group’s performance and position. The AC is entrusted to provide assistance to the Board in reviewing the Group’s financial reporting process and accuracy of its financial results, and scrutinising information for disclosure to ensure accuracy, adequacy, completeness and compliance with the accounting standards. The Board places great emphasis on the objectivity and independence of the external auditors. Through the AC, the Board maintains a transparent relationship with the external auditors in seeking professional advice on the internal control and ensuring compliance with the appropriate accounting standards. The AC is empowered to communicate directly with the external auditors to highlight any issues of concern at any point in time. The external auditors would meet the AC without the presence of the executive Board members and Management at least two (2) times a year on matters relating to the Group and its audit activities. During such meetings, the external auditors highlight and discuss the nature and scope of the audit, audit programme, internal controls and any other issues that may require the attention of the AC or the Board. The AC ensures the external audit function is independent of the activities it audits and reviews the contracts for the provision of non-audit services by the external auditors in order to make sure that it does not give rise to conflict of interests. The excluded contracts would include management consulting, internal audit and standard operating policies and procedures documentation. For the FY2021, fees paid to the external auditors, Messrs Crowe Malaysia PLT and its affiliated firms by the Group are stated in the table below:- Nature of Services Company (RM’000) Subsidiaries (RM’000) Audit 92 418 Non-Audit: Review of the Risk Management and Internal Control Statement 3 - The external auditors have confirmed to the AC that they are, and have been, independent throughout the conduct of the audit engagement in accordance with the independence criteria set out by the Malaysian Institute of Accountants.
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