129 ANNUAL INTEGRATED REPORT 2021 HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY ADDITIONAL INFORMATION RELATIONSHIP WITH THE EXTERNAL AUDITOR FGV has an External Auditor Policy and Procedures which details the following relating to the relationship with the External Auditor: • Appointment and re-appointment of External Auditor • Effectiveness of the External Auditor • Assessing independence of External Auditor • Audit partner rotation • Audit delivery and reporting • Engagement of External Auditor for non-audit services • Removal of External Auditor The details of the External Auditor Policy and Procedures can be found on Practice 9.3 of the CG Report. The AC ToR was revised on 30 November 2021 to include the requirement of MCCG that all non-audit services to be approved by the AC. For practical purposes, the AC has pre-approved a cumulative sum of up to RM100,000 for Malaysian Financial Reporting Standards (MFRS) and Financial Statements related training and works as non-audit services by the external auditor to be engaged by the Management. These engagements shall be reported to the AC every quarter. FEES PAID AND PAYABLE TO THE EXTERNAL AUDITOR The fees paid/payable to the external auditor, PwC, in FY2021 were as follows: FEES PAID/PAYABLE TO PwC IN 2021 RM’000 Audit Fees • PwC Malaysia 3,941 • Member firms of PwC International Limited (PwCIL) 1,222 Audit-Related Fees • PwC Malaysia and member firms of PwCIL 1,484 • Other non-audit fees paid to PwC Malaysia and member firms of PwCIL 157 Total 6,804 GROUP INTERNAL AUDIT The Group’s Internal Audit function is independent and reports functionally directly to the AC 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 AC as affirmed through a Quality Assurance Review once in every five years with the last one conducted in 2019. There were 55 internal auditors as at 31 December 2021 covering the activities of the Group. The qualification, professional status and continuous development training of the internal auditors together with their independence and objectivity are disclosed in Practice 11.1 and 11.2 of the CG Report. The continuous development training is to enhance and align the internal auditors’ competencies and knowledge to the emerging risks and audit requirements. The total cost incurred by Group Internal Audit for FY2021 was RM8.5 million (FY2020 was RM8.2 million). This amount comprised mainly staff cost and benefits, travelling expenses and the operating cost of the Group Internal Audit management system.
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