68 / 174
Fima Corporation Berhad
(21185-P)
sustainability & governance
66
GIA provides independent, objective assurance and consulting activities within the Group to add value and improve the Group’s
operations through audits of the Group’s key operations. 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:
• Developed an annual audit plan using a risk-based approval, taking into consideration of the key business units of the Group and
input from the senior management and Audit Committee.
• Presented the annual audit plan and programme to the Audit Committee for approval.
• Provided independent assessment and objective assurance over the adequacy and effectiveness of risk management and
internal control processes.
• Ascertained the level of compliance with established policies and procedures of the Group.
• 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 together with recommendations for
improvements and enhancements to the existing system of internal control and work procedures/processes.
• Reported on a quarterly basis to the Audit 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 financial year, three (3) 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
(2016: RM150,000).
Senior Management
Governing Body / Audit Comittee
External Audit
Regulator
Internal
Control
Measures
Management
Controls
1
st
Line of Defence
2
nd
Line of Defence
3
rd
Line of Defence
Financial Control
Security
Risk Management
Quality
Inspection
Compliance
Internal Audit
AUDIT COMMITTEE REPORT