FIMA CORPORATION ANNUAL REPORT 2016

page

FIMA CORPORATION BERHAD

(21185-P) |

Annual Report

2016

Internal audit function

The Committee is supported by the Group Internal Audit Department (GIA) of the penultimate holding company,

Kumpulan Fima Berhad, which undertakes internal audit functions of the Group and Company based on an

internal audit plan that is duly approved by the Committee. The GIA reports directly to the Committee to ensure

impartiality and independence. GIA serves as the third line of defense, giving assurance to the Committee that

the internal controls and risk management activities are functioning as intended.

The internal audits were undertaken to provide independent assessments on the adequacy, efficiency and

effectiveness of the Group’s internal control systems in anticipating potential risk exposures over key business

processes within the Group.

During the financial year, GIA had undertaken the following activities:

•

Presented the annual audit plan and programme to the Committee for approval.

•

Performed risk-based audits based on the annual audit plan, including follow-up on matters raised in the

previous internal audit reports.

•

Issued internal audit reports on risk management, control and governance issues identified from the risk-

based audits incorporating findings, recommendations to improve the weaknesses noted in the course of the

audits and management’s comments on the findings.

•

Reported on a quarterly basis to the Committee on significant risk management, control and governance

issues from the internal audit carried, the results of investigations and special reviews undertaken.

•

Conducted regular follow-up and monitoring on the implementation of recommendations made by GIA to

ensure that appropriate corrective actions are taken on a timely basis or within agreed timelines.

During the year, eleven (11) internal audit reports were issued on various operating units of the Group covering

reviews on control environment, risk management, revenue assurance, procurement, finance, human resource,

occupational safety and health and regulatory compliance and operations. The cost incurred for the internal audit

function during the financial year was RM150,000 (2015: RM140,000).

Governing Body / Audit Comitte

Senior Management

Line of Defence

Management

Controls

Internal

Control

Measures

Internal Audit

Financial Control

Security

Risk Management

Quality

Inspection

Compliance

External

Audit

Regulator

AUDIT COMMITTEE

REPORT

(contd.)