Frontken Berhad Annual Report 2017

36 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 Audit Committee Report (cont’d) E. SUMMARY OF WORKS DURING THE FINANCIAL YEAR (cont’d) • 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. The dates for the Audit Committee meetings are pre-planned and communicated to the auditors in advance for them to prepare the Audit Review Memorandum, Audit Planning Memorandum and Audited Financial Statements for presentation to the Audit Committee to meet the respective deadlines. The Audit Committee also noted the internal control deficiencies or areas of improvement identified by the Internal Auditors and action plan for corrective actions or improvement by Management. The Group outsourced its internal audit function to an independent internal audit service provider, namely BDO Governance Advisory 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 approved internal audit plan, so as to provide assurance that such systems are adequate and functioning as intended. The internal auditors’ 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 and scope of coverage, including the cost incurred on the outsourced internal audit function, are set out in the Statement on Risk Management and Internal Control included in this Annual Report. This Report is dated 28 March 2018.