FGV Annual Report 2014

1. Assessing the Risks and Control Environment • Reviewed the internal audit report on assessment of the risk management process of the Group. • Evaluated the adequacy and effectiveness of the system on internal controls by reviewing the outcomes of work performed by internal and external auditors and discussions with the key Management. • Reviewed the proposal for the establishment of a Management Audit Committee with the objective to resolve all outstanding internal and external audit issues. 2. Overseeing Financial Reporting Reviewed the following matters and subsequently recommended their approval to the Board: • The Quarterly Unaudited Financial results and the related announcements for the financial year. • The Audited Financial Statements of FGV Group for the financial year 2013 to ensure that the financial reports presented a true and fair view of the Company’s financial performance and complied with regulatory requirements. • The dividend proposals by the Company. • The assumptions for calculation of Land Lease Liability and its impact to the financial statements. • The Report on the Audit Committee, Statement of Risk Management and Internal Control and Statement on Corporate Governance to be included in the Annual Report for the financial year 2013. 3. Reviewing the External Audit Process • Reviewed and approved the external auditor’s terms of engagement, audit plan and coordination with other audit firms involved in auditing the Group’s operations for the financial year. • Reviewed and evaluated factors relating to the independence of the external auditors. • Reviewed the external audit fees proposed in respect of the scope of work required for the financial year and recommended the same for approval by the Board. • Reviewed the results and issues arising from the external audit for financial year 2013 and from quarterly reviews of the 2014 financial statements including resolution of the issues highlighted in their report to the Audit Committee and the Management’s responses. The external auditors were present at five (5) Audit Committee Meetings during the financial year for this purpose. • Reviewed the assessment of the external auditors for financial year 2013 for reappointment and recommended the same for approval by the Board. • Met with the external auditors in private meetings without the presence of Management twice during the year to confirm that there were no restrictions on the scope of their audit and to discuss any related matter. • Subsequent to the financial year, the Audit Committee undertook the following to strengthen the external audit process: a. Reviewed the External Auditor Policy covering the appo i n tmen t , a s s e s smen t , i ndependence maintenance, partner rotation every 5 years and non-audit services and recommended the same for approval by the Board. b. Reviewed the non-audit services provided by the external auditor during the year. 4. Reviewing the Internal Audit Process • Reviewed and approved the revision of the Group Internal Audit Charter for clarity of the purpose, authority and responsibility of Group Internal Audit. • Reviewed the Annual Group Internal Audit plan, which was prepared on a priority ranking system based on a risk assessment of the audit universe to provide sufficient audit coverage. • Reviewed the adequacy of competency and resources of Group Internal Audit to execute the Annual Group Internal Audit Plan, including monitoring the progress of recruitment for vacant positions. • Reviewed the reports issued by Group Internal Audit on the effectiveness and adequacy of governance, risk management and control processes. • Reviewed the monitoring of the resolution of issues and recommendations from reports issued by the Management Audit Committee. • Reviewed the outcome of investigations, including investigative reports arising from whistleblowing complains, and monitored the progress and outcome of action taken by the Management on confirmed misconduct, fraud and non-compliances. • Reviewed the report on the External Quality Assurance Review by the Institute of Internal Auditors (IIA) Malaysia on the conformity to IIA’s International Standards for the Professional Practise of Internal Auditing, efficiency and effectiveness in carrying out its mission and opportunities to enhance Group Internal Audit’s role. Felda Global Ventures Holdings Berhad pg 146 REPORT ON THE AUDIT COMMITTEE