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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
(cont’d)
Internal Audit Function (Cont’d)
The Audit Committee reported to the Board the outcome of its engagement with the internal and external auditors concerning
the adequacy and operating effectiveness of the Group’s system of risk management and internal control.
Board’s comments on the adequacy and operating effectiveness of the Group’s risk management and internal control
systems
The Board, through its Audit Committee, has reviewed the adequacy and operating effectiveness of the Group’s risk
management and internal control system, and that relevant actions have been or were being taken, as the case may be, to
remedy the internal control weaknesses identified from the review.
The Board is of the view that the system of risk management and internal control in place for the financial year under review
and up to the date of approval of this Statement for inclusion in the Annual Report of the Company is sound and sufficient
to safeguard shareholders’ investment and the Group’s assets. Whilst the Board is of the view that there were no material
losses incurred during the financial year as a result of weaknesses in the risk management and internal control system, the
Board believes that this system must continuously evolve to meet the changing business environment the Group operates
in. Therefore, the Board endeavors to put in place action plans, as deemed appropriate, to strengthen the system of risk
management and internal control from time to time.
Assurance by the Chief Executive Officer and Chief Financial Officer on the adequacy and operating effectiveness of the
risk management and internal control system
The Board has received assurance in writing from the Chief Executive Officer and Chief Financial Officer stating that the
Group’s risk management and internal control system operated adequately and effectively, in all material aspects, for the
financial year under review and up to the date of this Statement.
Pursuant to Paragraph 15.23 of Bursa’s Listing Requirements, the external auditors have reviewed this Statement for
inclusion in the Annual Report for the financial year ended 31 December 2015. The external auditors have reported to the
Board that, based on their review procedures performed and evidence obtained, nothing has come to their attention that
causes them to believe that this Statement intended to be included in the Annual Report is not prepared, in all material
respects, in accordance with the disclosures required by Paragraphs 41 and 42 of the Statement on Risk Management and
Internal Control: Guidelines for Directors of Listed Issues to be set out, nor is the Statement factually inaccurate.
This Statement is made in accordance with the resolution of the Board of Directors dated 29 March 2016.