FGV Annual Report 2015

112 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Statement on Corporate Governance KEY RESPONSIBILITIES The key responsibilities of the Audit Committee are as follows: 1) Assessing the risks and control environment a) To review the sufficiency and effectiveness of the Group’s overall enterprise risk management framework, strategies, policies and systems. b) To assess the effectiveness of the system of internal control vis-à-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. 2) Oversee financial reporting a) To review the quarterly results and the year-end financial statements of the Group prior to approval by the Board, focusing particularly on; (i) changes in or implementation of major accounting policies; (ii) significant and unusual events and adjustments; and (iii) compliance with the applicable financial reporting standards and other legal requirements. b) To review and recommend any policies relating to accounting, finance and internal control and endorse for the Board’s approval. c) To review the Audit Committee Report for inclusion in the Company’s Annual Integrated Report and recommend to the Board for approval. 3) Evaluating the external and internal audit process and outcome a) To review with the external auditors the following: (i) their audit plan and ensure coordination where more than one audit firm is involved; (ii) their evaluation of the system of internal controls; (iii) their audit report; (iv) 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); (v) the management letter and management’s response; and (vi) the adequacy of assistance given by the Group’s employees to the external auditor; b) to review any letter of resignation from the external auditors and report the same to the Board; c) to review whether there is any reason that the external auditor is not suitable for reappointment, and make relevant recommendation to the Board; d) to recommend the nomination of a person or persons as external auditors, including matters relating to the audit fee; e) to ensure the proper policies and procedures are established and to assess the suitability and independence of external auditors, including obtaining written assurance from external auditors confirming they are, and have been, independent throughout the conduct of audit engagement in accordance with the terms of reference of all relevant professional and regulatory requirement; f) to set policy on non-audit services which may be provided by the external auditors, and conditions and procedures which must be adhered to by the external auditors in the provision of such services; g) to review engagement of non-audit services by the external auditors to ensure that their independence is maintained; h) In relation to the Group’s internal audit function, to undertake the following: (i) 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 recommendations to the Board; (ii) approve the internal audit plan and review the results of the internal audit plan or investigation undertaken and whether or not appropriate action is taken on the recommendations of the Group’s internal audit function, and report or make relevant recommendations to the Board; (iii) review the effectiveness of the Group’s internal audit function including compliance with the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing and make recommendations necessary for improvement of the internal audit function; (iv) review any appraisal of or assessment of the performance of the Group’s internal audit function; (v) approve any appointment or removal of the FGV Chief Internal Auditor; (vi) appraise the performance and approve the remuneration (including annual increment, bonus and promotion) of the FGV Chief Internal Auditor; and (vii) take cognizance of resignation of the FGV Chief Internal Auditor and provide the resigning individual an opportunity to submit his/ her reasons for resigning.