FGV Annual Report 2014

e. Ensuring proceedings of meetings are minuted and endorsed by the Chairman of the Audit Committee before disseminating them to all Board members; and f. Ensure the Committee’s recommendations presented to the Board are supported by explanatory papers, including report of the Audit Committee or minutes that explain the rationale of the Audit Committee’s recommendations. 6. Responsibilities and Duties 6.1 Assessing the Risks and Control Environment i. To review the sufficiency and effectiveness of the Group’s overall enterprise risk management framework, strategies, policies and systems; ii. To assess the effectiveness of the system of internal control vis-a-vis the risks, control environment and compliance requirements of the Group, based on the results of the external and internal audits and assurances from the respective responsible persons. 6.2 Oversee Financial Reporting i. To review the quarterly results and the year-end financial statements of the Group prior to approval by the Board, focusing particularly on: a. changes in or implementation of major accounting policies; b. significant and unusual events and adjustments; and c. compliance with the applicable financial reporting standards and other legal requirements. ii. To review and recommend any changes in accounting policies or improvement in the system of internal control, where deemed necessary. iii. To review the Audit Committee Report for inclusion in the Company’s Annual Report and recommend to the Board for approval. 6.3 Evaluating the Internal and External Audit Process and Outcome i. To review with the external auditors the following: a. their audit plan and ensure coordination where more than one audit firm is involved; b. their evaluation of the system of internal controls; c. their audit reports; d. problems and reservations arising from the interim and final audits, and any matter the auditor may wish to discuss (in the absence of management where necessary); e. the management letter and management’s response; and f. the adequacy of assistance given by Group employees to the external auditor; ii. to review any letter of resignation from the external auditors and report the same to the Board; iii. to review whether there is any reason that the external auditors is not suitable for reappointment, and make relevant recommendation to the Board; iv. to recommend the nomination of a person or persons as external auditors, including matters relating to the audit fee; v. to ensure the proper policies and procedures are established to assess the suitability and independence of external auditors including obtaining written assurance from the external auditors confirming they are, and have been, independent throughout the conduct of the audit engagement in accordance with the terms of reference of all relevant professional and regulatory requirement. vi. to set policy on non-audit services which may be provided by the external auditors, conditions and procedures which must be adhered to by the external auditors in the provision of such services; vii. to review engagement of non-audit services by the external auditors to ensure that their independence is maintained; viii. In relation to the Group’s internal audit function, to undertake the following: a. review the adequacy of the scope, functions, competency, resources and budget of the Group’s internal audit function and that it has the necessary authority to carry out its work, and report or make relevant recommendation to the Board; Felda Global Ventures Holdings Berhad pg 142 REPORT ON THE AUDIT COMMITTEE