120 Additional Information We Are Kenanga Leadership Message Our Sustainability Approach How We Are Governed Financial Statements Shareholders’ Information b. In 2022, the AC had reviewed and deliberated on a total of thirty-eight (38) internal audit reports in relation to the audits carried out by GIA, together with the audit recommendations made by GIA and Management’s responses to those recommendations. Where appropriate, the AC had directed Management to rectify and improve the control and workflow procedures based on GIA’s recommendations. The AC, at all its quarterly meetings, also reviewed the implementation status of the corrective actions arising from the audit recommendations to ensure that the key risks and control lapses were addressed in a timely manner. With regard to long outstanding audit recommendations, where appropriate, the relevant Heads of Department were invited to the AC meeting to provide relevant explanation for the delay in implementing such audit recommendations. In ensuring timely implementation of audit recommendations, the Company, under its Performance Management Framework, had introduced a demerit system for any delay in implementing high-risk audit recommendations of more than twelve (12) months. c. In addition to the audit conducted on the processes and systems of Support and Business Units within KIBB Group, during the Financial Year 2022, GIA also conducted various regulatory required reviews in areas including amongst others, Anti-Money Laundering/ Counter Financing of Terrorism, Basel II (Pillar 3), Related Party Transactions, Verification of RM Marketable Securities, Staff Training Fund, Cyber Security, Management of Customer Information and Business Continuity Plan/ Disaster Recovery Plan Testing. d. The AC at its meeting on 25 January 2022, had taken note of GIA’s Annual Confirmation on Organisational Independence of Internal Audit Activity for the Financial Year 2021 in line with the International Standards for Professional Practice of Internal Auditing (Standards – 1110). e. For the purpose of evaluating the performance of the GCIA, the AC had at its meeting on 25 January 2022, reviewed and deliberated the GCIA’s 2021 Performance Appraisal, as well as the 2022 Balanced Scorecard, prior to submission of the same to the GNC for its further recommendation to the Board of KIBB for approval. The revised 2022 Balanced Scorecard incorporating the feedback/ comments provided by the AC, had been recommended to the Board of KIBB for approval by the AC at its meeting held on 24 February 2022. The AC’s recommendation on the GCIA’s 2021 Performance Appraisal and 2022 Balanced Scorecard were subsequently approved by the Board of KIBB on 26 January 2022 and 3 March 2022 respectively. f. The AC at its meeting on 25 January 2022, had also taken note of the implementation status of the agreed plans from the Quality Assessment Report on GIA. g. The AC, at its meeting on 25 October 2022 had deliberated and approved the revised Internal Audit Manual (Version 8) on the enhancement to the risk assessment process and the current Quality Assurance Improvement Program procedures in terms of approach, scope, process and resource of the internal assessment (i.e., periodic self-assessment) to be conducted. h. The AC, at all its quarterly meetings also reviewed and noted the confirmed minutes of the ARC of KIB and Group Outsourcing and Procurement Committee meetings. AUDIT COMMITTEE REPORT
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