TRAINING AND DEVELOPMENT The BAEC members are individuals with a wide range of relevant skills, knowledge and industry experience. They are fit, qualified and possessed the experience that enabled them to discharge their duties effectively. The members bring with them diversity of experience and financial background. Hence, they understand the matters being deliberated in the meeting including the financial reporting process and internal controls and able to analyse and challenge the Management. Despite their experience, the BAEC members are committed to update their knowledge and enhance their skills through appropriate continuing education programmes. They acknowledged the need to keep abreast with recent developments, new laws and regulations so that they will be effective in their role. During the year, the BAEC members attended several seminars and training conferences to keep abreast with the latest developments. Details of the seminars and training programmes attended by each Director in 2024 can be found in the Corporate Governance (CG) Report. PERFORMANCE REVIEW OF THE BAEC Based on the annual evaluation on the effectiveness of the Board, its Committees and the members of the Board, the Board is satisfied with the performance of the BAEC and its members. This is evidenced by the annual evaluation results where the BAEC recorded the score of 86% in the FY2024 assessment. The BAEC has discharged its duties in accordance with its Terms of Reference and in line with the requirements of MCCG, BNM CG Policy and MMLR. The results of the annual evaluation on the BAEC for the FY2024 can be found in the CG Report. RELATIONSHIP WITH THE EXTERNAL AUDITORS The Board maintains a transparent and professional relationship with the External Auditors through the BAEC. The BAEC reviews and assesses the suitability, objectivity and independence of the External Auditors annually. The appointment or re-appointment of the External Auditors is carried out in accordance with the requirements set out by Bank Islam to ensure the independence and objectivity of the External Auditors as statutory auditors are not compromised. The External Auditors also provide non-audit services to Bank Islam. For engagement of the External Auditors to perform non-audit services, the BAEC has to be satisfied that the External Auditors are suitable, independent and objective in the provision of such services, there is no element of conflict of interest and the fees chargeable are within the allowable threshold set. During the period under review, there was no non-audit services performed by the External Auditors. The BAEC was satisfied with the quality of audit, performance, competency and sufficiency of resources provided to Bank Islam by the External Auditors during the financial year under review. The amount of audit fees paid by Bank Islam and the Group can be found on page 360 of Notes 34 of the Financial Statements. INTERNAL AUDIT FUNCTION Bank Islam has an in-house internal audit function which is carried out by the Group Internal Audit Division (GIAD). The GIAD undertakes the audit on entities within Bank Islam and its subsidiaries. During the financial year under review, the audited entities include BIMB Investment Management Berhad, BIMB Securities Sdn Bhd, Bank Islam Labuan Offshore Branch, Bank Islam Trust Ltd, BIMSEC Nominees (Tempatan) Sdn Bhd and BIMSEC Nominees (Asing) Sdn Bhd. The audit includes validation exercises as required by the Securities Commission. The GIAD is primarily responsible to undertake regular and systematic reviews in conformance with the Institute of Internal Auditors’ International Professional Practices Framework and the Internal Audit Charter. This is a crucial aspect of GIAD to provide reasonable assurance that the risk management process, internal controls and governance practices of Bank Islam and its Group are operating satisfactorily and effectively and are in line with the Group’s goals and objectives. 241 www . b a n k i s l am. c om 01 02 03 04 05 06 07 ACCOUNTABILITY 08 09
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