FGV Annual Report 2015

117 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Statement on Corporate Governance The deliverables and reports from the audit of the statutory financial statements shall be communicated and agreed upon through Group Audit Plan on annual basis by the third quarter of every financial year. Management representation letter shall be issued to the external auditor upon completion of the statutory audit for each company under the Group. ENGAGEMENT OF EXTERNAL AUDITOR FOR NON-AUDIT SERVICES The external auditor may be engaged to perform permitted audit or non-audit services as detailed in the policy provided the engagement does not impair independence of the external auditor in its audit of the statutory financial statements. The policy also specifies prohibited non-audit services which the external auditor shall not be engaged for. All services to be awarded to the external auditor shall be subjected to independence assessment and monitoring. The provision of non-audit services to the Group shall not impair the external auditors’ independence or objectivity. The engagement of permitted non-audit services shall be reviewed and approved by the Audit Committee where the annual fees for non-audit services exceed 25% of the annual fee for audit of the statutory financial statements of the Group. A report on the engagement of the external auditor for all other audit and non-audit services together with the fees for each engagement shall be reported to the Audit Committee every 6 months or as and when the total of non-audit service fees exceed the 25% threshold. The maximum allowable non-audit services is 50% of the annual fee for audit of the statutory financial statements of the Group. During the year, the Audit Committee approved the appointment of PwC for non-audit service fees which exceeded the 25% threshold. The fees for non-audit services paid to PwC for the financial year ended 31 December 2015 is disclosed in page 136 of this Annual Integrated Report. REMOVAL OF EXTERNAL AUDITOR The Audit Committee shall recommend to the Board the termination of the external auditor after considering the request and reason for removal or resignation of the external auditor. The selection of new external auditor shall be conducted through invitation of a closed tender procurement process of the other Top Three accounting through the Group’s normal procurement policies and procedures. The termination shall be approved by the FGV Shareholders at the Annual General Meeting together with the proposal for the appointment of a new external auditor. Keeping updated on relevant information The Audit Committee members are regularly kept updated on changes to accounting standards and issues related to financial reporting through quarterly meetings. Group Internal Audit The 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 as affirmed through a Quality Assurance Review conducted by the Institute of Internal Auditors Malaysia in 2014. There are a total of 62 internal auditors across the Group headed by Pn. Zalily Mohd. Zaman Khan, FGV Group Chief Internal Auditor. All internal auditors have the relevant qualifications and have the necessary expertise developed based on the audit needs of the Group. COMPOSITION OF INTERNAL AUDITORS Professional Status Percentage of Total Auditors Professional accounting (ICAEW, CPA, ACCA, CA) or Certified Internal Auditor (CIA) or post-graduate 19 Certified IS Auditor (CISA) 5 Graduate 44 Graduate pursuing professional accounting (ICAEW, CPA, ACCA, CA) or Certified Internal Auditor (CIA) 24 Others 8