Padini Holding Berhad (Padini)
(Source: Padini Holdings Berhad, 2016)
The external auditor of Padini is BDO and the auditors expressed that Padini’s financial statements are in true and fair view. According to “Padini Holdings Bhd” (2017), Padini has total three members of audit committee (Which met the minimum requirement on number of audit committee) include the chairman which show are:-
(a). Mr Foo Kee Fatt (Chairman of Audit Committee, Independent). He is qualified to take this position as he is an approved company auditor under Section 8 of the Malaysian Companies Act, 1965. He is also the member of Malaysian Institute of Certified Public Accountants, Malaysian Institute of Accountants and Chartered Tax Institute of Malaysia.
(b). Mr…show more content… Bhd. Outsource internal audit function is good for Padini as outsourcers have the expertise which able to identify, detect and manage the risks more efficiently ("Internal Audit Outsourcing | Deloitte US | Internal Audit Transformation", 2017). Since all the members of the audit committee are independent non-executive directors and the company outsourced its internal audit function, therefore the audit report is considering as transparent which means the audit report can be…show more content… Personnel risks. The risks arise are due to the company lack of specialists and higher employee turnover. As mentioned early in part (a), the majority of the boards of directors are in the ageing stage. This has given a sign that most of the boards will likely resign at the same time and the company may require a huge number of personnel to take over those positions. But, it is difficult to find a suitable person with relevant knowledge as well as experience to take over. As the boards of directors are the key person for a company, HB’s operations may suffer if it simply appoints or appoints a wrong person to take over