Frontken Berhad Annual Report 2017

35 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 Audit Committee Report (cont’d) D. AUTHORITY The Committee shall have the authority to: • Investigate any matter within its terms of reference; • Have the resources which are required to perform its duties; • Have full and unrestricted access to an information which it requires in the course of performing its duties; • Have direct communication channels with the internal and external auditors; • 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 • 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. E. SUMMARY OF WORKS DURING THE FINANCIAL YEAR The principal activities undertaken by the Committee during the financial year under review are summarised as follows: • 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 applicable approved accounting standards and other legal requirements; • Reviewed the appointment of the external and internal auditors, their independence and effectiveness, including their fees, which are disclosed in the notes to the financial statements of the Group. The amount of fees paid to the external auditors of the Company or a firm or company affiliated to the external auditors for the financial year under review in respect of non-audit services rendered to the Group amounted to approximately RM10,000; • Reviewed with the external auditors the latter’s audit planning memorandum, comprising the scope of audit, key audit areas, contemplated key audit matters, audit approach and timetable; • Met with the external auditors two times during the financial year under review without the presence of the Executive Directors and Management to review the audit report and discuss relevant issues and obtain feedback; • Reviewed the issues raised by the external auditors, including opportunities for improvement to internal controls based on observations made in the course of the audit; • 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; • Reviewed and approved the Internal Audit Plan tabled by the outsourced independent internal auditors, with pertinent modifications as deemed fit by the Committee, reviewed the scope of coverage of work by the internal auditors for the financial year under review, including the results of evaluation of adequacy of the internal control system, as well as Management’s response to recommendations for improvement, on the reports from the internal auditors; • Briefed the Board the outcome of the meetings of the Committee, covering largely the work and results of the external auditors and internal auditors, recurrent related party transactions, quarterly announcements and year- end financial statements as well as risk management update of the Group; • Reviewed the related party transactions within the Group; • Reviewed semi-annually the summary reports on risk management of the Group as presented by the Risk Management Units on the status of risks faced by the Group, including emerging risks, and action plans deployed to manage the risks concerned to acceptable levels; • Reviewed the Group’s financial and accounting policies and practices; and