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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
E.
SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR
The principal activities undertaken by the Committee during the financial year are summarised as follows:
1. Reviewed the unaudited quarterly and year-end financial statements prior to recommending the same for the
Board’s approval, focusing particularly on significant and unusual events and compliance with accounting
standards and other legal requirements;
2. Reviewed the appointment of the external and internal auditors, their independence and effectiveness, and their
fees;
3. Reviewed the external auditors’ audit planning memorandum, comprising their scope of audit, key audit areas,
audit approach and timetable;
4. Met with the external auditors twice during the year without the presence of the Executive Directors and
Management to review the audit report and discuss relevant issues and obtain feedback;
5. Reviewed the external auditors’ management letter and recommendations regarding opportunities for improvement
to internal controls based on observations made in the course of the audit;
6. Reviewed the adequacy of the scope, functions, competency and resources of the internal audit function, and that
it has the necessary authority to carry out its work;
7. Reviewed the scope and results of the internal audit procedures as well as Management’s response to
recommendations for improvement, and evaluation of adequacy of the internal control system based on the
reports from the internal auditors;
8. Reviewed the related party transactions within the Group;
9. Reviewed the Group’s financial and accounting policies and practices; and
10. Evaluated the performance of the external auditors’ function based on timeliness, competency, adequacy of
resources to achieve the agreed scope of audit, and assistance given by the employees of the Group to the
external auditors before recommending the re-appointment of external auditors to the Board.
F.
INTERNAL AUDIT FUNCTION
The Group outsourced its internal audit function to an independent internal audit service provider, namely KPMG
Management & Risk Consulting Sdn Bhd. The principal function of internal audit is to undertake systematic reviews
of the governance, risk and internal control systems within the Group in accordance with an internal audit plan, so as
to provide assurance that such systems are adequate and functioning as intended. Its responsibilities are to provide
independent and objective reports on the state of internal controls of the various operating units within the Group to
the Audit Committee and provide recommendations for the improvement of the control procedures, so that remedial
actions are taken to mitigate weaknesses noted in the system and controls of the respective operating units.
Details of the internal audit activities, standards deployed and scope of coverage, including the cost incurred on the
outsourced internal audit function, are set out in the Internal Control Statement included in this Annual Report.
AUDIT COMMITTEE
REPORT
(cont’d)