128 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION AUDIT COMMITTEE REPORT KEY MATTERS REPORTED TO THE BOARD The AC Chairman updated the Board on matters deemed to be of major importance deliberated at the AC meetings and its recommendations. The copies of confirmed minutes of each AC meeting were also circulated to the Board for noting at the next practicable Board meeting. Among the significant matters considered by the AC during FY2021 were the following: Significant matters How these matters were addressed by the AC Financial Reporting Recurrent Related Party Transactions Internal Control Group Financial Policies Reviewed and recommended to the Board the revised Group’s LOA, Group Finance Policies and Procedures and External Auditor Policy and Procedures. 1 3 2 4 How We Are Governed Effective Audit and Risk Management Reviewed and recommended to the Board the quarterly financial results and year-end Financial Statements of FGV and the Group, focusing particularly on changes in financial reporting standards including assessing their impacts on the Financial Statements, reasons for fluctuations between periods, explanations for achievement of budgets, forecasts and matters requiring Management’s judgement, especially assets recoverability, accounting practices, unusual events and significant adjustments. Provided direction for internal control improvements on matters reported by the Group Internal Audit particularly during the COVID-19 environment where there were no physical movements. Encouraged management to prioritise the improvements based on the observations reported in the Group Internal Audit reports. Considered whether the recurrent related party transactions were undertaken at commercial terms in accordance with established procedures and within the mandate provided by the shareholders.
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