FGV Annual Integrated Report 2019

102 FGV HOLDINGS BERHAD GROUP INTERNAL AUDIT The Group’s Internal Audit function is independent and reports functionally directly to the Audit Committee and administratively to the GCEO. The conduct of Group Internal Audit is based on a Group Internal Audit Charter, which is established consistent with the requirements of the Institute of Internal Auditors’ International Professional Practices Framework and approved by the Audit Committee as affirmed through a Quality Assurance Review conducted in 2019. The internal auditors have sufficient mix of knowledge, skills and competencies to execute the audit plan. Composition of the internal auditors and the corresponding professional status are as follows: The above includes 19 internal auditors (32%) who are members of the Institute of Internal Auditors Malaysia. The total cost incurred for Group Internal Audit for FY2019 is RM10.3 million (FY2018: RM11.3 million). This amount comprises mainly staff cost and benefits, travelling expenses and the operating cost of the Group Internal Audit management system. Roles and Functions Group Internal Audit provides assurance services for the Group locally and overseas covering all operations where the Group has management control and where partners consent for jointly controlled entities. In addition to the assurance role, Group Internal Audit also undertakes a consulting role and investigative role. In its consulting role, Group Internal Audit undertakes advisory on governance, risk and control, policy and procedures review and participates in working groups to provide input on policy development, systems development and several initiatives of the Group. Investigative audits are undertaken upon any allegation of improper, illegal and dishonest acts based on the request of the Management or Board. AUDIT COMMITTEE REPORT There was a total of 59 internal auditors as at 31 December 2019 covering the activities of the Group headed by Zalily Mohamed Zaman Khan, the Chief Internal Auditor. HOW WE ARE GOVERNED GOVERNANCE AT FGV: ACCOUNTABILITY Professional status Percentage of total Auditors Professional accounting (ICAEW, CPA, ACCA, CA) or Certified Internal Auditor (CIA) or post-graduate (MBA or Masters) 14 Certified IS Auditor (CISA) 7 Graduate (Bachelor’s Degree) 64 Graduate pursuing professional accounting (ICAEW, CPA, ACCA, CA) or CIA 13 Others (Diploma) 2 Total 100