Independence and objectivity The Internal Audit Function confirms that independence and objectivity were maintained throughout the year by ensuring the following: • There was no interference by any element in the company, including matters of audit selection, scope, procedures, frequency, timing, or report content. • Internal audit staff have no direct operational responsibility or authority over any of the activities audited and hence do not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair judgment. Internal audit staff also refrained from reviewing specific operations for which they were previously responsible; made proper disclosures if independence or objectivity was impaired, or if there was any conflict of interest; have not accepted anything that may impair or be presumed to impair their professional judgment; and were aware of the threat of over-familiarity. Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. 6. External Audit The external auditor of the Company is BDO & Co Ltd (BDO), first appointed as external auditor at the AMS held in July 2020 in replacement of Ernst and Young following a tender issued by the RMAC in November 2019. BDO has been re-appointed as the external auditor by the shareholders of CIM Financial Services Ltd at the annual meeting held in February 2022. The ACC discusses critical policies, judgements and estimates, and external audit issues with BDO as and when necessary, and meets them at least once a year without management being present. The ACC assesses the effectiveness of the external audit process via feedback received from the Management team. Areas of improvement are thereafter discussed with the external auditor. The Group has implemented a policy for the provision of non-audit service by the external auditor. The objectives of the policy are: • To ensure that neither the nature of service nor the level of reliance placed on it by the Group could be perceived to impair the independence and objectivity of the external auditor’s opinion on financial statements. • To establish a straightforward and transparent process and reporting mechanism to enable the ACC to monitor and control the independence of the external auditor and compliance with this policy. • To avoid unnecessary restrictions on the purchase of services from the external auditor who are expected to provide a higher quality and a more cost effective service than other providers. No non-audit work has been provided by external auditor to the Company for the year under review. To guarantee objectivity and independence, the Board ensures that the team providing non-audit services is different from the one providing audit services. 7. Reporting with Integrity This report has been prepared in line with the principles set out by the International Framework established by the International Integrated Reporting Council (IIRC). It provides key information which allows for the assessment of the strategy, business model, operating context, material risks and opportunities, governance and operational performance of CFSL for the period 01 October 2022 to 30 September 2023. 5. Internal Audit Function Continued Corporate Governance Report Continued 86 CIM FINANCE ANNUAL REPORT
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