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F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
The external auditors have provided written confirmation to the Audit Committee on 20 February 2018 that they are and
have been independent throughout the conduct of the audit engagement in accordance with the terms of all relevant
professional and regulatory requirements. The Audit Committee after performing an effectiveness review, is satisfied
with the auditors’ effectiveness and independence and has recommended to the Board that Messrs Hanafiah Raslan
& Mohamad be re-appointed as the Company’s external auditor for the financial year ending 31 March 2019. Messrs
Hanafiah Raslan & Mohamad rotates partners every five (5) years and the current audit Engagement Partner who has
been appointed since 2014 will be rotated in 2019.
(c) Internal Audit:
• Reviewed and approved the Annual Internal Audit Plan for FYE2018 as proposed by GIA, to ensure the
adequacy of resources, coverage and inclusion of risk areas in the scope of review.
• Reviewed and deliberated on audit reports, follow-up reports, audit recommendations and management
responses, prepared by the GIA at Audit Committee’s quarterly meetings.
• Reviewed the corrective actions taken by management in addressing and resolving issues as well as ensuring
that all issues were adequately addressed on a timely basis.
• Reviewed the nature and extent of the non-audit activities performed by GIA.
• Reviewed the structure of GIA and adequacy of its resources and budget.
• Reviewed the Audit Committee Report and Statement on Risk Management and Internal Control and
recommended to the Board for approval prior to the inclusion of the same in the Company’s Annual Report.
• Assessed the effectiveness of the internal auditors via a detailed questionnaires completed by each Audit
Committee member and individual business units. The evaluation encompassed an assessment of the
qualifications and performance of the internal auditors, the size and strength of internal audit team, the quality
of the internal audit plan and audit reports and the auditor’s communications with the Audit Committee and
the Company, and the internal auditors’ independence, objectivity and professional skepticism.
• Reviewed the results of the annual assessment of the effectiveness of the internal auditors to ensure it has
the required expertise and professionalism to discharge its duties.
• Facilitated the Quality Assessment Review (“QAR”) of GIA’s activities by the Institute of Internal Auditors
Malaysia (“IIAM”).
(d) Recurrent Related Party Transactions (“RRPT”):
• Reviewed the RRPT entered into the Company with related parties in accordance with the shareholders’
mandate obtained to ensure that they are at arm’s length and within the mandated amount and other RRPT
that are outside the shareholders’ mandate.
• Reviewed and recommended to the Board the Circular to Shareholders relating to renewal of shareholders’
mandate for existing RRPT of a revenue or trading nature.
(e) Risk Management and Internal Control:
• The quality and effectiveness of the Group’s internal control through the consideration of the GIA reports
embracing all material systems including financial, operational and compliance controls to ensure that
they remain robust. Where areas of improvements are identified, remedial actions are taken and progress
monitored.
4.2 During the year, the Audit Committee members attended various training programs to keep them abreast of new
development pertaining to legislation, regulations, current commercial issues and risks in order to effectively discharge
their duties. Details of training programs attended by Audit Committee members are set out in the Corporate Governance
Overview Statement of this Annual Report.
AUDIT COMMITTEE REPORT