Shaped By High Standards Of Governance ANNUAL INTEGRATED REPORT 2022 151 Effective Audit and Risk Management Principle B: FEES PAID AND PAYABLE TO THE EXTERNAL AUDITOR The fees paid/payable to the external auditor, PwC, in 2022 were as follows: FEES PAID/PAYABLE TO PwC IN 2022 RM’000 Audit Fees • PwC Malaysia 4,251 • Member firms of PwC International Limited (PwCIL) 1,055 Audit-Related Fees • PwC Malaysia and member firms of PwCIL 1,471 • Other non-audit fees paid to PwC Malaysia and member firms of PwCIL 2,680 Total 9,457 GROUP INTERNAL AUDIT The Group’s Internal Audit function is independent and reports functionally directly to the AC and administratively to the Group CEO. The conduct of Group Internal Audit is based on the 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 2022 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 2022. Continuous development training is undertaken to enhance and align the internal auditors’ competencies and knowledge to the emerging risks and audit requirements. The details of the Chief Internal Auditor, the person responsible for internal audit can be found on page 125 on the Report. The total cost incurred by Group Internal Audit for 2022 was RM9.4 million, including centralised expenses (2021 was RM8.5 million). This amount comprised mainly staff cost and benefits, travelling expenses and the operating cost of the Group Internal Audit management system. SUMMARY OF WORK DONE BY GROUP INTERNAL AUDIT IN 2022 ASSURANCE The assurance work during the year 2022 was a balance of governance, risk and control at the corporate centre level and business operational level. The focus was in the following main areas: At the business operational level, the key audit scopes were on the Fresh Fruit Bunches (FFB) purchasing, Crude Palm Oil (CPO) inventory management, FFB to CPO and palm kernel revenue supply chain and billing management, trading and hedging of CPO and Processed Palm Oil (PPO), Original Equipment Manufacturer (OEM) products management, project management, security management and reporting of operational information. For our main Business Cluster, i.e. Upstream, the key audit scopes were mechanisation, migrant workers’ welfare management, wages management, procurement, inventory management, security management, by-products management, and road and bridges project management. Group Internal Audit also undertook Control SelfAssessment for 147 FGV Plantations (Malaysia) Sdn Bhd estates in 2022. With guidance and support of the AC, data analytics was introduced as an audit tool to achieve better audit coverage efficiently. Recurrent related party transactions review with a view of advising the AC on the Group’s compliance with the Related Party Transactions and Recurrent Related Party Transactions Policy. Corporate governance and risk management processes towards enhancing general governance and risk management practices and culture.
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