KENANGA ANNUAL REPORT 2019

K E N A N G A I N V E S T M E N T B A N K B E R H A D A n n u a l R e p o r t 2 0 1 9 76 3. SUMMARY OF THE AC’S ACTIVITIES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 3.1 Financial Reporting a. In discharging its role and responsibility pertaining to the Company’s financial reporting, the AC had at its meeting held on 30 January 2019, reviewed the quarterly financial statements for the quarter ended 31 December 2018, as well as the annual audited financial statements of the Financial Year Ended 31 December 2018. In reviewing the annual audited financial statements, the AC discussed with Management and the External Auditors, the accounting principles and standards that were applied and their judgment of the items that might affect the financial statements. The AC also deliberated on audit issues and key audit matters raised by the External Auditors and the action plans required to address those issues, based on the External Auditors’ recommendations. b. The subsequent quarterly financial statements for the quarters ended 31 March 2019, 30 June 2019 and 30 September 2019 were tabled and reviewed by the AC at its quarterly meetings held on 22 April 2019, 25 July 2019 and 24 October 2019 respectively, upon which the AC had recommended the quarterly financial statements to the Board for approval. c. The AC had, at its meeting held on 24 October 2019, recommended the annual assessment for impairment of assets for the Financial Year Ended 31 December 2019 based on the impairment approach and assumptions used for KIBB Group, subject to the final assessment to be done for the financial results as at 31 December 2019, for the Board’s adoption. The AC’s recommendation was subsequently approved by the Board on 31 October 2019. d. At each of its quarterly meeting, the AC was also notified of the amount of non-audit fees incurred and paid by KIBB Group to the External Auditors and their affiliate to ensure compliance with the Group’s Policy on Non-Audit Services by External Auditors. e. The AC had, at its meeting held on 26 August 2019, deliberated on KIBB’s stance that had been adopted for the annual corporate income tax return in relation to certain tax issues. 3.2 External Audit a. The report by the External Auditors on the statutory audit of the financial statements of the Company for the Financial Year Ended 31 December 2018 was reviewed and deliberated by the AC at its meeting held on 30 January 2019. During its deliberation, in addition to the relevant disclosures in the audited financial statements, the AC had also considered the recommendations made by the External Auditors towards enhancing internal controls and procedures. b. The AC had also at the same meeting reviewed the list of services provided by the External Auditors during the financial year comprising audit and regulatory-related services; issuance of a written communication to Management and the AC pertaining to the External Auditors’ audit/ findings, together with the recommendations for improvements in controls and procedures. The External Auditors’ services also included the review of the Statement on Risk Management and Internal Control, as well as other regulatory submission as required under the various regulatory requirements. AUDIT COMMITTEE REPORT