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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
86
The ARC, through its Chairman, shall report to the Board at the
next Board meeting after each ARC meeting. When presenting
any recommendation to the Board, the ARC will provide such
background and supporting information as may be necessary
for the Board to make an informed decision.
4. SUMMARY OF ACTIVITIES OF THE AUDIT AND RISK
COMMITTEE DURING THE FINANCIAL YEAR ENDED 31
MARCH 2020
4.1 During the FYE2020, the ARC reviewed, deliberated and
approved (where specifically required) the following:
(a) Financial Reporting:
• unaudited financial results for fourth quarter of
FYE2019 and first, second and third quarter of
FYE2020 to ensure compliance with the Bursa
Listing Requirements, applicable approved
accounting standards and other statutory and
regulatory requirements prior to recommending
to the Board for approval.
• impact of any changes to the accounting policies
and adoption of new accounting standards
as well as accounting treatments used in the
financial statements.
• obtained assurance from the Managing Director
and Financial Controller that:
• appropriate accounting policies had been
adopted and applied consistently;
• the going concern basis applied in the audited
financial statements and quarterly financial
results was appropriate;
• adequate processes and controls were in place
for effective and efficient financial reporting and
disclosures under the MFRSs and Bursa Listing
Requirements; and
• the audited financial statements for the FYE2019
give a true and fair view of the state of affairs of
the Group.
(b) External Audit:
•
audit plan, strategy and scope of the statutory
audits of the Group accounts for the FYE2020
prepared by the Company’s auditors, Messrs.
Ernst & Young PLT. The audit plan outlines
their scope of work and proposed fees for the
statutory audit, assurance-related review and
review of the Statement on Risk Management
and Internal Control.
•
recommended the external auditors’ fees to the
Board for approval.
•
the major issues that arose during the course of
the audit and their resolution.
•
key accounting policies and audit judgements.
•
recommendations made by Messrs. Ernst &
Young PLT in their management letter and the
adequacy of management’s response.
•
results of annual assessment of the overall
performance of Messrs. Ernst & Young PLT
including
independence,
objectivity
and
professionalism. The annual assessment was
carried out via a detailed questionnaire as well
as the feedback from the business units. Based
on the evaluation results, a recommendation is
made to the Board to re-appoint Messrs. Ernst &
Young PLT for the ensuing financial year. The re-
appointment will be put to the shareholders for
approval at the Company’s forthcoming Annual
General Meeting.
Messrs. Ernst & Young PLT have also provided
written confirmation to the ARC on 20 February
2020 that they are and have been independent
throughout the conduct of the audit engagement
for the Group during the FYE 31 March 2020 in
accordance with the By-Laws on Professional
Ethics, Conduct and Practice of the Malaysian
Institute of Accountants.
(c) Internal Audit:
•
Annual Internal Audit Plan for the FYE2020 as
proposed by GIA, to ensure the adequacy of
resources, coverage and inclusion of risk areas in
the scope of review.
•
internal audit reports, follow-up reports, audit
recommendations and Management responses.
•
corrective actions taken by Management
in addressing and resolving issues as well
as ensuring that all issues were adequately
addressed on a timely basis.
•
nature and extent of the non-audit activities
performed by GIA.
•
structure of GIA and adequacy of its resources
and budget.
•
Audit and Risk Committee Report together with
the 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.
•
Internal Audit Charter.
•
Internal Audit Standard Operating Procedures.
•
outcome of the annual assessment of the
effectiveness of the internal auditors which was
conducted via a detailed questionnaire. The
evaluation encompassed an assessment of the
qualifications and performance of the internal
auditors, the size and strength of internal audit