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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
For the year under review, the GIA had undertaken the following works:
(a)
Prepared the annual audit plan for approval by the Audit Committee.
(b)
Performed risk-based audits based on the approved annual audit plan, including follow-up of matters from previous
internal audit reports.
(c)
Issued internal audit reports to the management on risk management and internal control issues identified from the risk-
based audits together with recommendations for improvements for these processes.
(d)
Reported on a quarterly basis to the Audit Committee on significant risk management and internal control issues from
the internal audit reports issued and the results of follow-up of matters reported.
(e)
Reported on a quarterly basis to the Audit Committee the achievement of the audit plan and status of resources of the
GIA function.
(f)
Conducted regular follow-up and monitoring on the implementation of recommendations made by the GIA function to
ensure that appropriate corrective actions are taken on a timely basis or within agreed timelines.
(g)
Reviewed the procedures relating to related party transactions entered into by the Group to ensure that the related party
transactions have been conducted on the Group’s normal commercial terms and are not to the detriment of the Group’s
minority shareholders.
(h)
Conducted a briefing on Malaysian Sustainability Palm Oil Mill (MSPO) Certification’s awareness to the Audit Committee
and other Board members.
(i)
Prepared the Audit Committee Report and Statement on Risk Management and Internal Control for the Company’s 2018
Annual Report.
As a means to objectively evaluate GIA service quality and to ensure continuous conformance to The Professional Practices
Framework (IPPF) Standards issued by IIAM, a QAR has been conducted by a qualified external independent reviewer from
the IIAM in March 2018.
During the financial year, six (6) 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 compliances and operations.
The total costs incurred for maintaining the GIA function for FYE2018 is RM170,000 (2017: RM150,000) comprising personnel
costs, establishment expenses, admin and general expenses.
5.
ENTERPRISE RISK MANAGEMENT (“ERM”)
Risk management is regarded by the Board as an important aspect of the Group’s diverse and growing operations with
the objective of maintaining a sound internal control system. To this end, the Group has established the appropriate risk
management infrastructure to ensure that the Group’s assets are well-protected and shareholders’ value enhanced.
The Audit Committee and the Board is supported by RMC. The RMC identifies and communicates to the Audit Committee and
the Board the present and potential critical risks the Group faces, their changes and the management action plans to manage
these risks. The RMC convenes meeting on a yearly basis to review the key risk profiles and submit a summary reporting to
the Audit Committee.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL