BIMB Integrated Annual Report 2017

52 iv. Appropriateness of audit approach and the effectiveness of audit planning; v. Non-audit services rendered by auditor does not impede independence; and vi. Auditors demonstrate unbiased stances when interpreting the standards/policy adopted by the Company. The AEC at its meeting held on 25 January 2018 its annual assessment on KPMG Desa Megat PLT as BHB’s External Auditors and had recommended for Board approval at its Board meeting held on 26 January 2018. The assessment covered KPMG’s ability in meeting BHB’s requirements, governance, efficiency and effectiveness in planning and conducting the audit. It was highlighted that the KPMG team led by the engagement partner namely Mr. Adrian Lee Lye Wang had met all the required qualification criteria specified in the policy document and had performed satisfactorily in the following areas:-  Showed a genuine interest in BHB’s success and business;  Showed good understanding of BHB’s business;  Demonstrated a comprehensive and up-to-date understanding with industry issues and developments;  Demonstrated a high degree of tact, courtesy and professionalism;  Always keep abreast with any industry/technical developments; and  Showed effective coordination of audit. The assessment was in respect of KPMG’s engagement with the AEC and KPMG’s independence, objectivity and professional scepticism. Overall, the AEC was satisfied with KPMG’s performance and agreed to recommend the reappointment of KPMG to the Board. The Board agreed to form a collective view on KPMG’s performance based on the recommendation by the AEC. Overall, the Board agreed that KPMG had demonstrated a good understanding of BHB’s business and expectation. The Board concluded that KPMG had performed its function satisfactorily. The Board at its meeting on 26 January 2018 resolved to approve the re-appointment of Messrs. KPMG Desa Megat PLT as the external auditors of BHB and the application for the re-appointment to be submitted to Bank Negara Malaysia (“ BNM ”). BNM had on 14 March 2018 approved the said re-appointment and the same would be tabled to the shareholders of BHB at the upcoming 21 st Annual General Meeting of BHB.