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ANNUAL REPORT 2021 57

Board Audit Committee (“BAC”) (iii) To review and approve the audit scope, procedures
and frequencies and the annual internal audit plan;
The BAC is tasked to review the financial condition of the Bank,
its internal controls, performance and findings of the internal (iv) To approve the Audit Charter for Board’s approval,
auditors, and to recommend appropriate remedial action so that the internal audit function can be discharged
regularly through its meetings, preferably to be held at least effectively;
once in two months or as and when required.
(v) To review key audit reports (including reports on
The BAC comprises of three (3) members (including the BAC internal controls, risk management processes,
Chairman) a majority being INEDs and chaired by an INED. compliance with statutory requirements and
governance practices) and ensuring that Management
The responsibilities of the BAC are as follows: is taking the necessary corrective actions in a timely
1. Support the Board in ensuring that there is a reliable and manner to address weaknesses, non-compliance
transparent financial reporting process. with laws, regulatory requirements, policies and
other material issues identified;
2. Ensure that the financial accounts are prepared in a timely
and accurate manner and ensure prompt finalisation of the (vi) To recommend for the Board’s approval the
Audited Financial Statements. appointment, remuneration package, performance
appraisal, transfer and dismissal of the CIA;
3. Reporting
(vii) To review the assessment or findings arising from
(i) To review the financial statements (half-yearly the Shariah audit and report on the non-compliance
and annual basis), preliminary results release and events to the Shariah Committee and the Board and
any other formal releases relating to its financial ensure management takes action to address any
performance prior to escalation to the Board for issues or shortfalls.
approval.
(viii) To note significant disagreements between the CIA
(ii) To inform the Board on the issues and concerns and the Management, irrespective of whether these
discussed during its meetings, including those raised have been resolved, in order to identify any impact,
by the External Auditors and where appropriate, the disagreements may have on the audit process or
make the necessary recommendations to the Board findings;
for approval; and
(ix) To establish a mechanism to assess the performance
(iii) To review and endorse the status and and effectiveness of the internal audit function; and
progress of Management’s responses and
corrective measures on issues raised by BNM, (x) To oversee the effectiveness of the internal audit
MOF, Jabatan Audit Negara Malaysia, Jabatan function, staff competency requirements and
Akauntan Negara Malaysia or other regulatory bodies adequacy of audit resources and that IAD has the
prior to submission to the Board for approval. necessary authority to carry out its functions.
4. Oversee the effectiveness of the Internal Audit function: 5. Oversight on External Auditor:

(i) To oversee the functions of the Internal Audit (i) To oversee the functions of the External Auditor
Department (“IAD”) and to ensure compliance with and to ensure compliance with BNM CGPD,
BNM CGPD, BNM Guidelines on Internal Audit BNM Guidelines on External Auditor, the Code and
Function of Licensed Institutions, the Code and any other requirements of the relevant laws and
any other requirements of the relevant laws and regulations of other regulatory authorities.
regulations of other regulatory authorities;
(ii) To recommend to the Board for approval on the
(ii) To review the adequacy of internal controls, including appointment or reappointment, removal and
the scope of the internal audit function, the internal remuneration of the External Auditor;
audit findings and to recommend actions to be taken
by Management;