Affin Bank Berhad | Annual Report 2020

m. To oversee Management’s arrangements for the prevention and deterrence of fraud and ensure that appropriate action is taken against known perpetrators of fraud; n. To challenge management, internal and external auditors to ensure that the entity has appropriate antifraud programme and controls in place to identify potential fraud and ensure that investigations are undertaken if fraud is detected; o. Oversight of the Internal Audit activity, performance and to review the adequacy of the scope, functions, competency and resources of the GIA and the necessary authority to carry its work. The review may cover the planned audit work, internal audit programme, the results of completed work and Management implementation of agreed actions as recommended by GCIA. Where appropriate, the Committee may direct the Management to rectify and improve the system of internal controls and procedures based on the GIA’s recommendations and suggestions for improvements; and p. To review the findings of any examinations by regulatory authorities, the Management responses and monitor implementation of corrective actions adopted by the Group. TERMS OF REFERENCE The functions and duties of GBAC shall include, but are not limited to the following:- a. To review the Quarterly Financial Results and Year-End Financial Statement prior to the approval by the Board focusing on the following:- • Changes in or implementation of major accounting policies; • Significant and unusual events or any going concern issues; • Significant adjustments arising from the audit; and • Compliance with accounting standards,disclosurerequirements and other legal requirements. b. To ensure that the accounts are prepared in a timely and accurate manner with frequent reviews of the adequacy of provisions against contingencies, bad and doubtful debts; c. To review any related party transactions that may arise within the AFFIN Bank Group; d. To act upon any request from the Board to investigate and report on any issues of concern as regard to the Management of the Group; e. To consider the major findings of internal investigations and Management’s responses; f. To obtain external professional advice and to invite outsiders with relevant experience to attend meetings, subject to the approval of the relevant regulatory body, where necessary; g. To recommend to the Board, the appointment of External Auditors and their audit fees; h. To review with the External Auditors the scope of the audit plan, system of internal controls, the audit reports (including the Management letter and Management responses), the assistance given by the Management and any findings or action to be taken; i. To meet with the External Auditors without the presence of management at least twice a year; j. To review and recommend for Board’s approval, the proposals for appointment and fees on non-audit services rendered by the External Auditors or 3rd parties. If the External Auditors are engaged, the GBAC is responsible for evaluating and ensuring that such engagement does not compromise the independence and objectivity of the External Auditors, in their roles as Statutory Auditors of the Group; k. To review the adequacy and effectiveness of the Group’s control environment and existing policies, procedures and practices within the Group, in order to regulate and streamline the same to ensure uniformity; l. To provide oversight on the effectiveness of internal control mechanisms implemented by the Management, in establishing and maintaining high ethical standards for all employees of the Group; 211 GROUP BOARD AUDIT COMMITTEE REPORT AFFIN BANK BERHAD 197501003274 (25046-T) | ANNUAL REPORT 2020 07. FUNCTIONS AND DUTIES