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CORPORATE GOVERNANCE
OVERVIEW STATEMENT
(PURSUANT TO PARAGRAPH 15.25 (1) OF THE MMLR OF BURSA SECURITIES)
areaS OF FOCuS MatterS COnSIDereD
• Evaluated the independence and objectivity of the external auditor by reviewing the fees and the
list of non-audit services provided by the external auditor to BHB and the Group.
The BAEC requested that justification is to be provided by the Management on the external
auditor’s audit fee. The BAEC was informed that the audit fees were justified with an additional
value added-services to BHB Group, at no additional cost. The value added services are as follows:
INTEGRATED ANNUAL REPORT 2020 (2) Data input testing for the MFRS 9 models (4 portfolios);
(1) MFRS 9 model monitoring procedures (4 portfolios);
(3) Modification loss audit procedures; and
(4) Review of management overlay.
•
The BAEC exercised its right as stipulated in its Terms of Reference, to hold meetings with the
external auditor without the presence of the Management to enable open discussion with the
BAEC.
138 During the financial year under review, two (2) meetings were held without the Management’s
presence, namely on 29 January 2020 and 28 October 2020.
• Assessed the performance of the external auditor by reviewing the timeliness of service
BIMB HOLDINGS BERHAD 199701008362 (423858-X) (1) The audited financial statement for the financial year ended 31 December 2019 were
deliverables. The external auditor was able to complete the audits for BHB and the Group within
the timelines set as evidenced below:
completed on 30 April 2020. However, due to the COVID-19 Pandemic and the MCO by the
Government, the signed off by the external auditor was on 14 May 2020;
(2) Report on limited review for the financial period 30 September 2020 was signed off by the
external auditor on 30 October 2020; and
(3) No past audit lapses were observed on the external auditor in the past assurance engagements.
•
Reviewed and recommended to the Board the re-appointment of external auditor. The BAEC
will evaluate the recomendations based on the performance, independence and suitability of
the external auditors. In reviewing the performance, independence and suitability of the external
auditors, the BAEC reviewed the qualifications and the experiences of the audit team as well as
conducted an assessment on the effectiveness and the performance of the external auditors and
areas such as the scope of the audit, their independence and objectivity, audit fees and audit
experience.
