CapitaLand Malaysia Mall Trust | Annual Report 2020

(C) SUMMARY OF THE WORK OF THE AUDIT COMMITTEE Throughout FY 2020 and up until to the date of this report, AC has met its responsibilities in discharging its functions and obligations in accordance with its Terms of Reference (TOR) as described below: 1. Financial Reporting (a) Reviewed the quarterly results for all the financial quarters and year-end financial statements, ensuring the integrity of the financial statements of CMMT, and announcements relating to CMMT’s financial performance, prior to the approval by the Board for the release of the announcements, focusing particularly on: (i) changes in or implementation of major accounting policy changes; (ii) significant matters highlighted including financial reporting issues, significant judgements made by Management, significant and unusual events or transactions, and how these matters are addressed; and (iii) compliance with accounting standards and other legal requirements. (b) Discussed the key audit matters raised by the external auditors with Management and the disclosure thereof in the Auditors’ Report for FY 2020. (c) Recommended to the Board for its approval, the half-yearly income distribution for payment to the Unitholders. 2. External Auditors (EA) (a) Reviewed the EA’s report on the conduct of the audit of CMMT’s financial statements FY 2020, the findings on significant accounting and financial reporting issues and its impact to the consolidated financial statements of the CMMT Group and, the findings on the internal control system as well as an overview of issues found during the interim audit. (b) Reviewed EA’s scope of work and audit plans for the year under review to understand their audit methodology, significant risk areas and accounting policies/disclosures and timing. (c) Reviewed, in consultation with Management, the performance of the EA and their fees, upon satisfaction of their independence and objectivity including non-audit services rendered by the EA. (d) Conducted bi-annual private sessions with the EA and CL IA without the presence of Management to discuss any issues or reservations arising from their audit. No major concerns were highlighted by EA and CL IA and they received full cooperation from Management. 3. CapitaLand Internal Auditors (IA) The IA function is outsourced and undertaken by CL IA that reports directly to the AC. The IA function was undertaken to provide independent assessments on the adequacy, efficiency and effectiveness of the internal control systems to manage risk exposures of the Manager and the CMMT Group. The AC had full access to the services and advice of the IA and received reports on all audits that were performed. During FY 2020, CL IA has executed the following IA services: (a) A total of three audit assignments were conducted on CMMT and the Manager based on the 2020 IA plan, adhering to the International Standards for the Professional Practice of Internal Auditing (Standards) issued by the Institute of Internal Auditors; (b) Conducted regular follow up with Management on agreed corrective actions on outstanding audit issues to ensure key risks and weaknesses were addressed effectively and in a timely manner including the tightening of internal controls, whereby the status of implementation of the IA recommendations were reported to the AC on a quarterly basis; and (c) Prepared the annual IA plan and scope for FY 2021 to be deliberated and approved by the AC. 113 BECAUSE TOMORROW MATTERS