Affin Bank Berhad | Annual Report 2020

197 The GBAC meets with the External Auditors at least twice a year to discuss their audit plans and audit findings in relation to the Group’s financial statements. Private sessions between the GBAC and the External Auditors were held without the presence of the PGCEO and the Management to discuss the audit findings and any other observations they may have had during the audit process. In addition, the External Auditors are invited to attend the Annual General Meeting of the Bank and be available to answer shareholders’ enquiries on the conduct of the statutory audit and the preparation and content of their audit report. The External Auditors have confirmed their independence and that there were no circumstances and relationship that create threats to their independence and that the ethical requirements have been complied with. The GBAC has also reviewed the nature and extent of non-audit services rendered by the External Auditors and ascertained that there is no conflict of interest. The amount of non-audit fees payable to the external auditors and their associates during the financial year 2020 is set out in the Financial Statements in this Annual Report 2020. 4. Risk Management and Internal Control Framework The Bank recognises the importance of maintaining a sound system of internal controls and risk management practices. The Board affirms its overall responsibility for the effectiveness of the Bank’s internal controls and risk management framework. The Bank’s Statement on Risk Management and Internal Control which provides an overview of the state of internal controls of the Bank is set out on pages 200 to 207. 5. Internal Audit Function The Bank has an Internal Audit function that is supported by the Group Internal Audit Division. The Bank’s Internal Audit (“IA”) provides independent and objective assurance of the adequacy and effectiveness of the internal controls framework. The IA staff is placed under direct authority and supervision of the GBAC to preserve its independence. The Group Chief Internal Auditor reports functionally to GBAC and administratively to PGCEO. Details of the Internal Audit function, together with the state of the Group’s internal controls, are set out in the Board Audit Committee Report on pages 208 to 220 and Statement on Risk Management and Internal Control on pages 200 to 207 of the Annual Report 2020. PRINCIPLE C INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIPS WITH STAKEHOLDERS 1. Effective Communication with Shareholders The Board and Management recognised the importance of maintaining good relationship with shareholders and stakeholders and is committed to providing effective and open two-way communication to improve disclosure and transparency. The Bank continuously ensure that timely, complete, transparent and accurate disclosures are made to the shareholders and stakeholders in accordance with the requirements of BNM CG and MMLR. Various communication channels are used to promote effective communication between the Bank and its stakeholders which includes quarterly results announcement, analyst briefing, general meetings and issuance of Annual Report. Annual General Meeting is an important platform for the shareholders to interact and communicate directly with the Board and Management. Shareholders are furnished with the Bank’s Annual Report which include amongst others, Directors’ Report, Financial Statements and operational performance of the Bank. The notice of the Annual General Meeting together with the Annual Report are sent to the shareholders 28 days ahead before the Annual General Meeting so as to give sufficient time for the shareholders to consider the resolutions that will be discussed and voted at the Annual General Meeting. During the Annual General Meeting, shareholders are given the opportunity to raise questions or seek clarifications on the agenda items as well as other matters concerning the Bank. All resolutions deliberated during the General Meetings will be put to vote by way of poll and the voting results will be released to Bursa Malaysia on the same day. CORPORATE GOVERNANCE OVERVIEW STATEMENT AFFIN BANK BERHAD 197501003274 (25046-T) | ANNUAL REPORT 2020