FGV Annual Integrated Report 2019

98 FGV HOLDINGS BERHAD GOVERNANCE AT FGV: ACCOUNTABILITY AUDIT COMMITTEE REPORT AREA OF FOCUS MATTERS CONSIDERED Overseeing Financial Reporting (continued) c. Evaluated the Quarterly Report on Consolidated Results for each quarter and appraised the analysis of the results in detail. Where required, the Audit Committee provided direction and sought more details on the analysis of the Consolidated Results to make its recommendation to the Board on the Quarterly Report. The Audit Committee also requested further details on several important matters for its deeper understanding and provided the necessary direction on the matters. d. Assessed the cash flow assumptions for the purpose of calculation of the Land Lease Liability to FELDA and its impact to the Financial Statements. e. Reviewed and endorsed policy revisions relating to accounting, finance, governance and internal control for the Board’s approval. The Chairman of the Audit Committee held four private meetings with the external auditors to be briefed in detail on the financial results of the Company and the Group. Evaluation of the External Audit Process and Outcome a. Reviewed the external auditors’ report on the outcome of the external audit process for FY2018, which included internal control recommendations and Management’s response to the recommendations. b. Assessed the comprehensiveness of the audit plan of the external auditors for FY2019 and ensured coordination with the various other audit firms apart from Messrs. PricewaterhouseCoopers PLT (PwC) who are involved in the external audit of several subsidiaries. c. Assessed the external auditors for their reappointment for FY2019 based on the established External Auditor Policy and recommended their reappointment to the Board. The Audit Committee also considered the feedback from Management on their evaluation of the external auditors based on the services provided on the external audits for FY2018. d. Assessed the external auditors audit fees for FY2019 and made its proposal to the Board for approval. e. Received written assurance from external auditors in their audit plan for FY2019 confirming they are, and will maintain, independent throughout the conduct of the audit engagement in accordance with the Terms of Reference of all relevant professional and regulatory requirements. Evaluation of the Internal Audit Process and Outcome a. Received and reviewed all 61 reports issued to all members of the Audit Committee by Group Internal Audit during FY2019. These are reports from assignments undertaken from the internal audit plan and any unplanned investigation and special assignments undertaken by Group Internal Audit. b. Presented with and reviewed the following at every quarterly meeting during FY2019: • A report summarising the main observations from the internal audit reports issued during the quarter. The Audit Committee gave direction to Management on key matters requiring the Management’s special and immediate attention. The Audit Committee reported to the Board on these key matters. • A report on the progress of implementation of the approved internal audit plan for the FY2019, including the status of internal audit resources to support the implementation of the approved internal audit plan and development progress of the internal audit staff. • A report on the progress of implementation of the recommendations from the internal audit reports issued. There were no matters requiring the attention of the Board from the progress reported. c. Performed the following: • Reviewed and approved the internal audit plan for FY2020 together with the scope, functions, resources, budget and KPI of the Group’s internal audit function and reported to the Board accordingly. • Assessed the performance of the Chief Internal Auditor, which included assessment of the effectiveness of the Group’s internal audit function with reference to the Institute of Internal Auditors’ International Professional Practices Framework. • Assessed the Chief Internal Auditor’s performance, increment, bonus adjustment and renewal of her contract of employment. d. The Chairman of the Audit Committee held four private meetings and discussions with the Chief Internal Auditor and her Management team to discuss developments which were relevant for the internal audit work, to give direction for a more effective audit plan, to be apprised of or give guidance on any major internal audit observations and any related matters towards improving the governance, risk and control processes of FGV Group. Reviewed Recurrent Related Party Transactions Monitoring of the Group a. Reviewed the Quarterly Report on the recurrent related party transactions of the Group and took note that the related party transactions were within the mandate from the shareholders. b. Reviewed the Recurrent Related Party Transactions Circular to seek mandate from shareholders at the 2019 Annual General Meeting. c. Reviewed the internal audit report on the annual recurrent related party transactions review. d. Reviewed the status of contemporaneous pricing of FGV Group’s major recurrent related party transactions. Reviewed Statements included in FGV ’ s Annual Integrated Report 2018 a. Reviewed the Report on the Audit Committee, the Statement on Risk Management and Internal Control, the CGOS, the Management Discussion & Analysis, the Chairman’s Statement and the GCEO’sMessage to be included in the Annual Integrated Report 2018 and recommended the same to the Board for approval. The Statement on Risk Management and Internal Control was reviewed reflecting on the reports of the external and internal auditors on the risks and control environment of the Group and related matters that have been brought to the Audit Committee and the Board during the financial year. HOW WE ARE GOVERNED