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Fima Corporation Berhad
(21185-P)
sustainability & governance
64
Summary of Activities
During the financial year under review, the Audit Committee in the discharge of its duties and functions had carried out the following
activities:
A.
Financial Reporting
1.
Reviewed the quarterly unaudited financial statements and the annual audited financial statements with the Management
and external auditors focusing on the matters set out below, prior to recommendation to the Board of Directors (“Board”)
for approval:
• Any change in accounting policies and practices, and its implementation;
• Any significant change and adjustment in the presentation of financial statements;
• Any significant variation in audit scope and approach in respect of the audited financial statements; and
• Compliance with accounting standards and regulatory requirements.
2.
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.
B.
External Audit
1.
Reviewed and deliberated on the following:
•
the external auditors’ annual audit plan for financial year ended 22 June 2017 outlining their scope of work which
included new areas or new scope of audit emphasis such as changes in laws and regulations (e.g. Companies Act
2016), multi-location audit scoping, audit timeline and statutory audit fees;
•
issues that arose during the course of the audit and their resolution;
• key accounting and audit judgements; and
• recommendations made by the external auditors in their management letters and the adequacy of management’s
response.
2.
Undertook an annual assessment of the performance of the external auditors, Messrs. Hanafiah Raslan & Mohamad
(“HRM”) including the suitability, independence, quality of services and adequacy of resources and experience of the
external auditors, and provided the recommendation on their re-appointment and remuneration to the Board. Assessment
questionnaires were used as a tool to rate HRM’s performance using a five-point scale on their ability to provide advice
or clarifications on the quality of the Group’s financial reporting, updates of current developments in accounting principles
and auditing standards and maintain active engagement through both verbal and written communication during the audit
process, as well as their responsiveness to issues.
HRM had presented written assurance on independence through their Audit Plan and Report to the Audit Committee on 22
February 2017 that, in accordance with the terms of all relevant professional and regulatory requirements, they are and had been
independent throughout the conduct of the audit engagement.
The Audit Committee was satisfied with the suitability of HRM, as a firm as well as in terms of the professional staff assigned to
the audit, based on the quality of services and sufficiency of resources they provided to the Group. The Audit Committee took
note of the openness in communication and interaction with the lead audit engagement partner and engagement team, which
demonstrated their independence, objectivity and professionalism. The outcome of the performance assessment of HRM and
the feedback obtained via assessment questionnaires from Company personnel who have had substantial contact with the audit
team during the year support the Audit Committee’s recommendation to the Board that HRM be reappointed as the Company’s
external auditors for the financial year ending 31 March 2018.
AUDIT COMMITTEE REPORT