38 / 144
37
Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
F.
INTERNAL AUDIT FUNCTION
The Group outsourced its internal audit function to an independent internal audit service provider, namely BDO
Governance Advisory Sdn Bhd in place of the outgoing service provider, i.e. KPMG Management & Risk Consulting
Sdn Bhd. The principal function of internal audit is to undertake systematic reviews of the governance, risk and
internal control systems within the Group in accordance with an internal audit plan, so as to provide assurance that
such systems are adequate and functioning as intended. Its responsibilities are to provide independent and objective
reports on the state of internal controls of the various operating units within the Group to the Audit Committee and
provide recommendations for the improvement of the control procedures, so that remedial actions are taken to mitigate
weaknesses noted in the system and controls of the respective operating units.
Details of the internal audit activities and scope of coverage, including the cost incurred on the outsourced internal
audit function, are set out in the Statement on Risk Management and Internal Control included in this Annual Report.
Audit Committee
Report
(cont’d)