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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 Group MD and
CFO 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 FRSs
and Bursa Listing Requirements; and
- the audited financial statements for the
FYE2019 to 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.
• 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 letters 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 28 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
Annual Report 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
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