FGV Annual Report 2014

During the financial year, Group Internal Audit has undertaken the following main activities: a. Carried out internal audits according to the Annual Group Internal Audit Plan approved by the Audit Committee and reported the findings, recommendations and management’s corrective action to the Audit Committee every quarterly. b. Undertook investigative audits based on the Audit Committee’s, Management’s and Whistleblowing Committee’s requirements and reported the outcome of such investigations to the Audit Committee and Management. c. Undertook selective follow-up audits and implemented pe r i od i ca l f o l l ow- up mechan i sms f o r a l l aud i t recommendations. The status of implementation tracked were reported to the Management Audit Committee monthly and accordingly reported to the Audit Committee every quarterly. d. Undertook follow-up of the matters reported by the external auditor in its Audit Committee report. e. Undertook Recurrent Related Party Transactions review for the purpose of supporting the Audit Committee’s statement in the Circular to the shareholders to seek mandate on new and existing Recurrent Related Party Transactions of the Group. f. Underwent External Quality Assurance Review by the Institute of Internal Auditors (IIA) Malaysia. g. Participated in working groups and reviewed draft documents to provide input in periodical policy review exercises or new formulation of the Board Charter, the Terms of Reference of the Board Commitees, various Group level policies, the Statement on Risk Management and Internal Control 2013, the Report on the Audit Committee 2013 and the Statement on Corporate Governance 2013. h. Undertook validation reviews of the newly developed e-RML system for plantation operations. i. Facilitated the establishment of an internal Operational Compliance Unit within Palm Upstream Cluster to enhance compliance culture within the operations. j. Undertook relevant recruitment, training and development activities to be adequately resourced. The total cost incurred for Group Internal Audit for the financial year ended 31 December 2014 is RM11.05 million (2013: RM11.59 million). Statement by the Board This Report is made in accordance with a resolution of the Board of Directors and approved at the Board meeting dated 28 April 2015. Felda Global Ventures Holdings Berhad pg 148 REPORT ON THE AUDIT COMMITTEE