60 CSE Global Limited REPORT ON CORPORATE GOVERNANCE The ARC is satisfied that the Internal Audit function is adequately resourced and has the appropriate standing within the Company. The ARC has reviewed the adequacy and effectiveness of the in-house IA at least annually, and is satisfied that the inhouse IA is adequate and effective and has maintained its independence from the activities that he audit. The Internal Auditors adopts a risk-based auditing approach in formulating the annual audit plan which aligns its activities to the key risks across the Group’s business. The reviews performed by the Internal Auditors are aimed at assisting the Board in evaluating the adequacy and effectiveness of risk management, controls and governance processes. During the year, the Internal Auditors conducted its audit reviews based on the annual internal audit plan which was approved by the ARC. The annual internal audit plan incorporates the audit of key risk areas identified under the Group’s Enterprise Risk Management framework. Each quarter, the Internal Auditors would submit a report to the ARC on the key audit findings and actions to be taken by Management on such findings. Key findings are also highlighted at ARC Meetings for discussion and follow up actions. The ARC monitors the timely and proper implementation of the required corrective, preventive or improvement measures to be undertaken by Management. External Auditor The Board is responsible for the initial appointment of external auditor. Shareholders then approve the appointment at the Company’s AGM. The external auditor holds office until its removal or resignation. The ARC assesses the external auditor based on factors such as the performance and quality of its audit and the independence of the auditor, and recommends its appointment to the Board. Pursuant to the requirements of the Listing Rules, an audit partner may only be in charge of not more than of five consecutive annual audits and may then return after two years. Ernst & Young LLP (“EY”) has met this requirement, and the current EY’s audit partner for the Company took over from the previous audit partner with effect from the financial year ended 31 December 2024. In reviewing the nomination of EY for re-appointment for the financial year ending 31 December 2024, the ARC had considered the adequacy of the resources and experience of the audit engagement partners assigned to the audit, the size and complexity of the audit exercise for the Group, and the number and experience of the supervisory and professional staff assigned to the Group’s audit through a review of the curriculum vita of the EY audit team. The ARC had also considered the quality of discussions with the findings raised by EY, including the Audit Quality Indicators presented. On this basis, the ARC recommended the re-appointment of EY at the upcoming AGM of the Company. The Company has complied with Rules 712 and 715 of the Listing Rules in relation to the appointment of its auditor.
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