121 KENANGA INVESTMENT BANK BERHAD Annual Report 2022 3.4 Briefing on KIBB’s Malaysian Financial Reporting Standards 9 Model Enhancement At its meeting on 24 February 2022, the AC had taken note of the IFRS 9 Model Enhancement in terms of the triggers, details, output of the model enhancement and the impact assessment on the final Expected Credit Loss briefed by an external consultant, Deloitte Business Advisory Sdn Bhd. 3.5 Regulatory Examinations/ Inspection Report As stipulated in its TOR, the AC also deliberates on reports issued by the regulators arising from their examinations or inspections on entities within KIBB Group. This is to ensure proper implementation of appropriate remedial and corrective measures in respect of the findings arising from examinations/ inspections conducted by the regulators. During the year, the AC had deliberated on the following two (2) regulatory audit reports: Date of AC Meeting Titles of Regulatory Audit Report 21 July 2022 BNM’s Thematic Review on the Adequacy of Identification and Verification of Beneficial Ownership for Legal Firms and Foundations 21 July 2022 Final Inspection Report by Bursa Malaysia Berhad on KIBB’s Subsidiary, Kenanga Futures Sdn Bhd Dated 22 June 2022 During its deliberation, the AC not only discussed in detail the findings, areas for enhancement and recommendations made by the respective regulators, but also on the action plans identified by Management in addressing the findings and implementation of the recommendations including the agreed timeline of implementation of such recommendations. The implementation of the regulator’s recommendations was tracked by Group Regulatory & Corporate Services Division of KIBB and reported to the respective regulators on a quarterly basis until full resolution of all findings raised. 3.6 Related Party Transactions During its quarterly meetings, the AC also reviewed the related party transactions and recurrent related party transactions entered into by the Company and/or its group of companies to ensure compliance with the MMLR of Bursa Securities. 3.7 Disclosure for Annual Report 2021 Under its TOR, the AC was also tasked to review the accuracy and adequacy of the Chairman’s Statement in the Directors’ Report, corporate governance disclosures and internal control, interim financial reports and preliminary announcements in relation to the preparation of financial statements. In this regard, the AC at its meeting on 24 February 2022 and 21 March 2022 respectively had also reviewed and recommended to the Board of KIBB for approval, the disclosure of the following reports and/or statements in KIBB’s 2021 Annual Report: • Statement on Risk Management and Internal Control; • AC Report; • Sustainability Report and Sustainability Statement; and • Corporate Governance (“CG”) Overview Statement and CG Report. AUDIT COMMITTEE REPORT
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