127 ANNUAL INTEGRATED REPORT 2021 HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION d. Received written assurance from external auditors in their audit plan for FY2021 confirming they are, and will maintain, independent throughout the conduct of the audit engagement in accordance with the ToR of all relevant professional and regulatory requirements. INTERNAL AUDIT PROCESS AND OUTCOME a. Received and reviewed all 39 internal audit reports issued during FY2021 to the Chairman and members of the AC. These are reports from assignments undertaken from the internal audit plan and any unplanned investigations and special assignments undertaken by Group Internal Audit. b. Reviewed the following at every quarterly meeting during FY2021: • A report summarising the main observations from the internal audit reports issued during the quarter. The AC gave direction to Management on key matters requiring the Management’s special and immediate attention. The AC reported to the Board on these key matters • A report on the progress of implementation of the approved internal audit plan for the FY2021, including the status of internal audit resources to support the implementation of the approved internal audit plan and development progress of the internal audit employees • A report on the progress of implementation of the recommendations from the internal audit reports issued. The Board was apprised of delays in implementation of the recommendations c. Performed the following: • Reviewed and approved the internal audit plan for FY2021 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 The Chairman of the AC held seven private meetings and discussions with the Chief Internal Auditor and her Management team to discuss on 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. 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 Circular to shareholders for the purpose of seeking mandate for recurrent related party transactions at the 13th AGM in 2021. c. Reviewed the internal audit report on the annual recurrent related party transactions review. d. Reviewed justifications of the FGV Group’s major recurrent related party transactions which were not supported with contemporaneous pricing. FINDINGS OF INVESTIGATIONS AND RELATED LEGAL OPINION a. Considered the investigation reports, valuation reports, legal opinion and related information from forensic and internal investigations. b. The Committee deliberated the findings and sought relevant clarification to satisfy themselves that the investigations and legal opinion are comprehensive. STATEMENTS INCLUDED IN FGV’S ANNUAL INTEGRATED REPORT 2020 Reviewed the AC Report, the Statement on Risk Management and Internal Control, the Corporate Governance Overview Statement, the Management Discussion & Analysis, the Chairman’s Statement and the GCEO’s Message to be included in the Annual Integrated Report 2021 as well as the CG Report 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 AC and the Board during the financial year.
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