Frontkn Berhad Annual Report 2015

FRONTKEN CORPORATION BERHAD

(651020-T)

ANNUAL REPORT

2015

FUNCTIONS AND DUTIES

The functions and duties of the Committee are as follows:

1. To review the following and report the same to the Board:

(a) The nomination of external auditors;

(b) The adequacy of existing external auditors’ audit arrangements, with particular emphasis on the scope,

quality and independence of the audit and the external auditors, as the case may be;

function and that it has the necessary authority to carry out its work;

(d) The internal audit programme, results of the internal audit and that appropriate actions are taken on the

recommendations of the internal auditors;

(e) Any appraisal or assessment of the performance of members of the internal audit function and approve any

appointment or termination of internal auditors;

(f)

The effectiveness of the internal control and management information systems;

(g) The financial statements of the Company with both the external auditors and Management;

(h) The external auditors’ audit report;

(i)

Any management letter sent by the external auditors to the Company and Management’s response to such

letter;

(j)

Any letter of resignation from the Company’s external auditors;

(k) The quarterly and year-end financial statements of the Group;

(l)

The assistance given by employees of the Company to the external auditors;

(m) To discuss problems and reservations arising from the interim and final audits, and any matter the external

auditors may wish to discuss (in the absence of Management, where necessary);

(n) Review principal business risks of the Group and arrangements in place to contain those risks to acceptable

levels; and

(o) All related party transactions and potential conflict of interest situations that may arise within the Company or

Group.

2. To consider the appointment of the external auditors, the audit fee and any questions of resignation or dismissal

and whether there is a reason (supported by grounds) to believe that the Company’s external auditors are not

suitable for re-appointment, including adherence to the Company’s policy on the provision of non-audit services

by the external auditors;

3. To carry out any other function that may be mutually agreed upon by the Committee and the Board, which is

beneficial to the Company, and ensure the effective discharge of the Committee’s duties and responsibilities;

4. The Committee’s actions shall be reported to the Board with such recommendations as the Committee deems

appropriate; and

5. To report to Bursa Malaysia Securities Berhad on any matter reported by it to the Board of the Company which has

not been satisfactorily resolved resulting in a breach of the Listing Requirements.

AUTHORITY

The Committee shall have the authority to:

1. Investigate any matter within its terms of reference;

2. Have the resources which are required to perform its duties;

3. Have full and unrestricted access to an information which it requires in the course of performing its duties;

4. Have direct communication channels with the internal and external auditors;

5. Obtain independent/external professional or other advice and to secure the attendance of outsiders with relevant

experience and expertise if it considers this necessary; and

6. Convene meetings with the external auditors, the internal auditors or both, excluding the attendance of other

Directors and employees of the Company, whenever deemed necessary.

AUDIT COMMITTEE

REPORT

(cont’d)