Frontken Berhad Annual Report 2018

39 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 Audit Committee Report (cont’d) E. SUMMARY OF WORKS DURING THE FINANCIAL YEAR (CONT’D) ۽ Noted the outcome of internal audit work and issues raised by the in-house Internal Auditor covering the Taiwan operations, including Management action plans; ۽ Briefed the Board the outcome of the meetings of the Committee, covering largely the work and results of the External Auditors and Internal Audit Function, recurrent related party transactions, quarterly announcements and bNJ[ NWM ࠰WJWLRJU \]J]NVNW]\ J\ `NUU J\ ]QN [R\T VJWJPNVNW] ^YMJ]N XO ]QN 0[X^Y$ ۽ 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; and ۽ Evaluated the performance of the External Auditors in meeting the requirements of the Company before recommending to the Board for the tabling of their re-appointment at the Annual General Meeting for approval by shareholders. The dates of AC meetings are pre-planned and communicated to the auditors in advance for them to prepare the Audit Review Memorandum, Audit Planning Memorandum, Internal Audit Plan and Internal Audit reports for presentation to ]QN *^MR] ,XVVR]]NN ]X VNN] ]QN [N\YNL]R_N MNJMURWN\ =QN *, JU\X WX]NM ]QN RW]N[WJU LXW][XU MN࠰LRNWLRN\ X[ J[NJ\ XO RVY[X_NVNW] RMNW]R࠰NM Kb ]QN 2W]N[WJU *^MR] /^WL]RXW JWM JL]RXW YUJW OX[ LX[[NL]R_N JL]RXW\ X[ RVY[X_NVNW] Kb Management. The Group has an in-house Internal Auditor who is based at the Company’s subsidiary in Taiwan, namely Ares Green Technology Corporation, who conducts internal audit covering solely the Taiwanese operations. As for the Company and other subsidiaries, the Internal Audit Function is outsourced 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 internal control system within the Group in accordance with approved internal audit plan, so as to provide assurance that such a system is adequate and operating effectively as intended. The Internal Audit Function’s responsibilities are to provide independent and objective reports on the state of internal controls of the various operating units within the Group to the AC 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 internal audit activities, scope of coverage and cost incurred on the combined Internal Audit Function for ]QN ࠰WJWLRJU bNJ[ ^WMN[ [N_RN` J[N \N] X^] RW ]QN <]J]NVNW] XW ;R\T 6JWJPNVNW] JWM 2W]N[WJU ,XW][XU RWLU^MNM RW ]QR\ Annual Report. This Report is dated 26 March 2019.