118 Additional Information We Are Kenanga Leadership Message Our Sustainability Approach How We Are Governed Financial Statements Shareholders’ Information AUDIT COMMITTEE REPORT c. At its meeting held on 24 February 2022, the AC was updated by the External Auditors, on the latest status of the statutory audits conducted on KIBB and its Group of Companies (“KIBB Group” or “the Group”) in respect of Financial Year Ended 31 December 2021. The AC had, at the same meeting, duly deliberated on the audit matters which required its attention. The External Auditors had also reviewed the allocation of the shares of the Employees Share Options Scheme under the Employees’ Share Scheme (“ESS”) made to the Eligible Employees and Executive Directors of KIBB and its non-dormant subsidiaries and had reported to the AC at its meeting held on 24 February 2022, that in its opinion, the allocation of shares made under the ESS was in compliance with the criteria for allocation of shares under the ESS which had been disclosed to the Eligible Employees and Executive Directors of KIBB and its non-dormant subsidiaries. The AC had concurred with the External Auditors’ opinion. d. Pursuant to Section 67(1) of the Financial Services Act 2013, an auditor appointed by a licensed person shall meet the qualification criteria set out in Bank Negara Malaysia (“BNM”)’s Policy Document on External Auditor and shall continue to meet the criteria throughout the audit engagement. In addition, BNM’s letter dated 3 May 2012 on “Supervisory Expectations on AC Pertaining to the Appointment/ Re-Appointment of External Auditors” also sets out the areas of assessment to be performed. Being a licensed financial institution under the Financial Services Act 2013, the Company is required to undertake an annual assessment on areas focusing on performance and independence of External Auditors. In relation to the audit of the Company’s financial statements for the Financial Year Ended 31 December 2021, the External Auditors had given a written assurance to the AC that they were independent in accordance with the By Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Code of Ethics for Professional Accountants (including International Independence Standards), throughout their audit engagement for 2021. This written assurance by the External Auditors was contained in the External Auditors’ report which was presented to the AC on 25 January 2022. Following the implementation of the requirement for Annual Transparency Reporting by the SC’s Audit Oversight Board and in line with Malaysian Code of Corporate Governance’s criteria to guide decisions on the appointment and re-appointment of the external auditors, the 2021 Transparency Report was issued by EY and presented to the AC on 25 January 2022. After taking into consideration the assessment carried out by Management and the 2021 Transparency Report, the AC at the same meeting, had concluded that the External Auditors had fulfilled all the qualification set out in BNM’s Policy Document on External Auditor in terms of its performance and independence and had therefore, recommended to the Board that the External Auditors be re-appointed as the Company’s External Auditors for the Financial Year 2022. e. At its meeting held on 25 October 2022, the AC reviewed and approved the External Auditors’ 2022 Audit Plan outlining their scope of work and proposed fees covering their recurring audit assignments, as well as other regulatory-related services. During the presentation of their 2022 Audit Plan, the External Auditors had also highlighted to the AC the developments (as at 30 June 2022) in the financial reporting as summarised overleaf.
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