KENANGA ANNUAL REPORT 2020

76 3 1 2 4 5 6 7 HOW WE ARE GOVERNED b. The subsequent quarterly financial statements for the quarters ended 31 March 2020, 30 June 2020 and 30 September 2020 were tabled and reviewed by the AC at its quarterly meetings held on 29 April 2020, 22 July 2020 and 27 October 2020 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 27 October 2020, reviewed the basis and assumptions used for the annual assessment for impairment of assets of KIBB Group for the Financial Year Ended 31 December 2020, and recommended the same for the Board’s approval, subject to the final assessment to be done for the financial results as at 31 December 2020. 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 30 January 2020, reviewed and recommended to the Board for approval, the revision to the Group Accounting Policy to incorporate KIBB Group’s latest business developments and to enhance the existing impairment methodologies in accordance with the Malaysian Financial Reporting Standard 9 – Financial Instruments as recommended by the Group Executive Committee. The AC’s recommendation was subsequently approved by the Board on 31 January 2020. f. The AC had, at its meeting held on 26 February 2020, deliberated on the change of Tax Agent for KIBB and Its Subsidiary Companies for the year of assessments beginning on and after 2019. The final selection was authorised by the Group Managing Director and the GCFOO in line with the Group Procurement Policy. 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 2019 was reviewed and deliberated by the AC at its meeting held on 30 January 2020. During its deliberations, 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 which comprised 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. c. At its meeting held on 26 February 2020, the AC was subsequently updated by the External Auditors, on the latest status of the statutory audits conducted on KIBB Group. The AC had, at the same meeting, duly deliberated on the audit matters which required its attention. At the same meeting, the AC was also informed by the External Auditors that they had reviewed the allotment of shares under the Employees’ Share Scheme ( “ESS” ) made to Employees and Executive Directors of KIBB and Its Non-Dormant Subsidiaries during the Financial Year Ended 31 December 2019. Based on the review, the External Auditors were of the opinion that the allotment of shares under the ESS was in compliance with the criteria for allotment of shares which had been disclosed to the Employees and Executive Directors of KIBB and Its Non-Dormant Subsidiaries. The AC had concurred with the External Auditors’ opinion. AUDI T COMMI TTEE REPORT