FGV Annual Integrated Report 2019

104 FGV HOLDINGS BERHAD AUDIT COMMITTEE REPORT SUMMARY OF WORK DONE BY GROUP INTERNAL AUDIT IN 2019 AREA OF FOCUS MATTERS CONSIDERED Assurance The assurance work during the year 2019 was a balance of governance, risk and control at the corporate centre level and business operational level. At the corporate centre level, the focus was on inculcating best and better practices in the following main areas: • Governance and riskmanagement processes towards enhancing general governance and riskmanagement practices and culture. • Financial management processes, particularly accounting and financial controls, credit control and collection process, payment efficiency and cash flow management. • Recurrent Related Party Transactions review with a view of advising the Audit Committee on the Group’s compliance with the Related Party Transactions and Recurrent Related Party Transactions Policy. • Sustainability certification management. • Information Technology (IT) governance and controls which include security, system development, data integrity and operation efficiency. At the business operational level including overseas operations, the key audit scopes were in the areas of financial controls, sales and receivables management, procurement and contract management, asset and inventory management, production or service delivery, trading, bulking operation, security operation and IT. For our main Business Cluster, i.e. Upstream, the key audit scopes were financial controls, procurement, operations, fresh fruit bunches purchasing, mechanisation and workforce management. Consulting Group Internal Audit plays an active role in advising the Group on various matters. In 2019, this was through the following platforms: • IT Project Steering Committee and Working Committee meetings to provide guidance on IT project management and system development or implementation processes. • Participation in policy development in working groups and reviewed draft documents. The focus of Group Internal Audit’s feedback on the documents was from the aspect of compliance with any regulatory requirements, incorporating practical best practices and enhancing governance and risk management. Investigation Group Internal Audit has undertaken investigative audits based on the request and information fromManagement, Board and Audit Committee. The outcome of the investigations have been reported to the Audit Committee and the Board. The recommendations and resolutions arising from the investigation reports tabled have been communicated to Management for the necessary implementation. During the year, Group Internal Audit undertook several investigations and special review work. The special reviews identified improvements in the following areas: • Revenue and receivables management. • Stock management. • Procurement management. • Project management. • Data management. PERFORMANCE REVIEW During the financial year, the Board evaluated the Audit Committee’s performance and the extent to which the Audit Committee met the requirements of its Terms of Reference, including the term of office and performance of the Audit Committee and each of its members. This performance assessment constituted part of the annual Board effectiveness assessment, pertaining to the assessment of Board Committees. This Report was made in accordance with a resolution of the Board of Directors approved on 17 April 2020. HOW WE ARE GOVERNED GOVERNANCE AT FGV: ACCOUNTABILITY