FGV Annual Report 2014

• Appraised the performance and approve the remuneration (including the contract review, annual increment and bonus) of the FGV Chief Internal Auditor. • Prior to the Audit Committee meetings, the Chairman held private meetings and discussions with the Chief Internal Auditor on the internal audit reports and any related matters. 5. Reviewing the Related Party Transactions • Reviewed the revision of the Group’s policy and procedures on Related Party Transactions and Recurrent Related Party Transactions and recommended the same for approval of the Board. • Reviewed the quarterly report on Recurrent Related Party Transactions to monitor the transactions against the shareholders’ mandate. • Reviewed the draft Circular to the shareholders to seek mandate on new and existing Recurrent Related Party Transactions of the Group and recommend the same for approval of the Board. • Reviewed the internal audit report on Recurrent Related Party Transactions. 6. Reviewing the Whistleblowing Process • Reviewed the revision of the Group’s Whistleblowing Policy and Procedures and recommended the same for approval of the Board. • Reviewed the reports on analysis and status of whistleblowing complaints. 7. Other activities • Reviewed the Terms of Reference of the Audit Committee and recommended the same to the Board for approval. • Reviewed the progress of specific IT initiatives having significant impact on the accounting processes. Training During the year, the Audit Committee members attended various conferences, seminars and training programmes. Summary of activities of Group Internal Audit The FGV Group has an in-house Group Internal Audit function, which is independent and reports functionally direct to the Audit Committee and administratively to the Group President/ Chief Executive Officer. 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 Standards for the Professional Practise of Internal Auditing and approved by the Audit Committee. Group Internal Audit provides independent and objective assurance of the adequacy and effectiveness of risk management, controls and governance processes of the Group locally and overseas covering all operations where the Group has management control and where partners consent for jointly controlled entities. In addition to the assurance role, Group Internal Audit also undertakes consulting role and investigative role. In its consulting role, Group Internal Audit undertakes policy and procedures review, participate in work groups to provide input on policy development, systems development and several initiatives of the Group. Investigative audits are undertaken where there are improper, illegal and dishonest acts reported through the Whistleblowing Channel of the Group or from other sources. To maintain the objectivity of the assurance role, a dedicated investigative audit team is allocated for the investigative audits. The assurance internal audits are planned on a risk based approach which prioritises the audit requirements of the Group’s diverse and distributed business operations. Based on the risk assessment, priority ranking was assigned to each operating unit to arrive at the audit plan over 3 years. The 3-year audit plan is reviewed every year and forms the basis to derive the Annual Group Internal Audit Plan. The 3-year audit planning mechanism and Annual Group Internal Audit Plan is approved by the Audit Committee before commencement of each financial year. Each internal audit assignment is undertaken based on a careful planning to focus on covering management of risks to achieve objectives; economy, efficiency and effectiveness of operations; safeguard of assets; accuracy, reliability and timeliness of reported information; and compliance with laws, regulations and internal policies and procedures. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 147