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• Audit and Risk Committee Report together with
Statement on Risk Management and Internal
Control are 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
team, the quality of the internal audit plan
and audit reports and the internal auditor’s
communications with the ARC and the Company,
and the internal auditors’ independence,
objectivity and professional skepticism.
(d) Recurrent Related Party Transactions (“RRPT”)
• RRPT entered into by 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 and recommended to the Board to
seek shareholders’ approval for the renewal of
shareholders’ mandate for the existing RRPT at
the forthcoming Annual General Meeting.
(e) Related Party Transactions
• aggregate values of all related party transactions
entered into by the Group to ascertain whether
shareholders’ mandate is required, at every
quarterly meeting.
(f) Risk Management and Internal Control
• 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.
• Risk Management Committee which has been
renamed as Risk Steering Committee on 24 July
2020, provides oversight, direction and counsel
to the group’s risk management programmes
which shall include the effective implementation
of the various anti-bribery control measures.
4.2 During the FYE2020, the ARC 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 ARC members are set out in the Statement
on Corporate Governance section of this Annual Report.
5. EVALUATION OF THE AUDIT AND RISK COMMITTEE
For the FYE2020, the annual assessment and evaluation on
the performance of the ARC was conducted by an external
consultant through questionnaires and one-to-one interviews.
The key areas covered in the evaluation questionnaires are:
• composition and quality of the ARC.
• oversight of the financial reporting and internal controls.
• risk management.
• ARC meeting process and procedures.
• ethics and compliance.
The Nomination and Remuneration Committee discussed the
findings on the evaluation and the results of the evaluation
and findings, together with areas of improvement, were
presented to the Board for deliberation. Overall, the Board is
satisfied that the ARC and its members have discharged their
functions, duties and responsibilities in accordance with the
ARC’s Terms of Reference.
Audit and Risk Committee Report
Annual Report 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
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