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KUMPULAN FIMA BERHAD
(11817-V) |
Annual Report
2016
4.6 The Audit Committee, on behalf of the Board, regularly reviews and holds discussions with the
Management on the actions taken on internal control issues identified in reports prepared by the GIA,
external auditors and Management. Minutes of the Audit Committee meetings are tabled to the Board.
4.7 Review and award of major contracts by the project committees and teams, subject always to the
delegated authority limits set by the Board. A minimum of three quotations is called for and tenders are
awarded based on criteria such as quality, track record and speed of delivery.
4.8 Clearly documented standard operating procedure manuals set out the policies and procedures for
day to day operations to be carried out. Regular reviews are performed to ensure that documentation
remains current, relevant and aligned with evolving business and operational needs.
4.9 The competency of staff is enhanced through rigorous recruitment process and development
programmes. A performance appraisal system of staff is in place, with established targets and
accountability and is reviewed on an annual basis.
5.
INTERNAL AUDIT FUNCTION
The Group’s internal audit function is undertaken by GIA which reports directly to the Audit Committee and
administratively to the Group MD. The GIA assists the Audit Committee in the discharge of its duties and
responsibilities. Its key role is to provide independent and objective assurance designed to add value and
assist the Group in accomplishing its objectives by bringing a systematic, disciplined approach to evaluate
and improve the effectiveness of risk management, internal control system and governance processes.
The business processes and conduct of the operating units within the Group are continuously assessed by
GIA in the context of adequacy and effectiveness of the financial, operational controls and risk management.
GIA reports to the Audit Committee and communicates to Management on audit observations noted in
the course of their review and performs monitoring on the status of actions taken by the operating units. It
conducts independent reviews of the key activities within the Group’s operating units based on a detailed
annual audit plan developed using a risk-based methodology including input from senior management and
the Audit Committee, which was approved by the Audit Committee. The terms of reference of the GIA are
clearly spelt out in the Group Internal Audit Charter.
The GIA evaluates the following:
•
Adequacy, integrity, effectiveness of the Company and Group’s internal controls in safeguarding
shareholders’ investment and the Group’s assets. The internal controls cover financial, operational,
information technology, compliance controls and enterprise risk management;
•
Extent of compliance with established policies, procedures and statutory requirements; and
•
Adequacy of policies, procedures and guidelines on the Company and Group’s accounting, financial
and operational activities.