34
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
A.
COMPOSITION AND ATTENDANCE
The members of the Audit Committee (the “Committee”) are as follows:
Chairman of Committee
Dato’ Haji Johar Bin Murat @ Murad
Independent Non-Executive Director
Members of Committee
Aaron Sim Kwee Lein
Senior Independent Non-Executive Director
Dr Jorg Helmut Hohnloser
Non-Independent Non-Executive Director
The Board must appoint the members of the Committee from amongst its Directors which fulfils the following
requirements:-
(a) the Committee must be composed of not fewer than three (3) members;
(b) all the Committee members must be non-executive directors, with a majority of them being independent
directors; and
(c)
at least one (1) member of the audit committee:-
(i)
must be a member of the Malaysian Institute of Accountants;
(ii)
if he is not a member of the Malaysian Institute of Accountants, he must have at least three (3)
years’ working experience and :-
(aa) he must have passed the examinations specified in Part I of the First Schedule of the
Accountants Act 1967; or
(bb) he must be a member of one of the associations of accountants specified in Part II of the
First Schedule of the Accountants Act 1967; or
(iii)
fulfils such other requirements as prescribed or approved by Bursa Securities.
The Board, through the Nomination Committee, assesses the performance of the Committee on an annual
basis and once in every three (3) years assesses the effectiveness of the Committee and each its members
to determine whether the Committee and members have carried out their duties in accordance with their
terms of reference.
The meeting attendance of the Committee members is provided in the Corporate Governance Statement in
this Annual Report.
B. MEETINGS
There were five (5) meetings held during the financial year under review. During those meetings, the Committee
held two (2) private sessions with the External Auditors without the presence of the Executive Directors
and Management. During the private sessions, the Committee enquired into the co-operation extended by
Management in the course of the audit, including the supply of information to facilitate the conduct of the
external audit and whether the External Auditors encountered any difficulty in obtaining such cooperation
and information for the purpose of the External Audit.
The meetings of the Committee are planned ahead so that the members can make the necessary arrangement
to attend the meetings. The notice for the meetings is served at least one week before each meeting and
the meeting papers are sent to each member to provide them time to read, including an opportunity for the
members to inquire into the agenda items as well as to seek more information before the meeting.
At each Board meeting, the Committee Chairman briefs the Board pertaining to matters discussed at the
Committee meeting held earlier. A copy of the minutes of the Committee meeting is circulated to the Board
for notation.
AUDIT COMMITTEE
REPORT
