FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 115 HOW WE ARE GOVERNED There are a total of 54 internal auditors across the Group as at 31 December 2016 headed by Pn. Zalily Mohd Zaman Khan, the Chief Internal Auditor. The credential of the Chief Internal Auditor can be obtained in the Key Senior Management's Profile section at page 90 of this Annual Integrated Report 2016. The internal auditors have sufficient mix of knowledge, skills and competencies to execute the audit plan. Composition of the internal auditors and the corresponding professional status are as follows: Professional Status Percentage of Total Auditors Professional accounting (ICAEW, CPA, ACCA, CA) or Certified Internal Auditor (CIA) or post-graduate (MBA or Masters) 24 Certified IS Auditor (CISA) 5 Graduate (Bachelor's Degree) 39 Graduate pursuing professional accounting (ICAEW, CPA, ACCA, CA) or CIA 28 Others (Diploma) 4 GIA has received "Corporate Award 2015 - Continuous Professional Development" from Institute of Internal Auditors Malaysia on 25 August 2016 for demonstrating strong commitment towards continuous professional development for the internal auditors in the Company. The total cost incurred for GIA for the FYE 2016 is RM9.9million (FYE 2015: RM10.5million). This amount comprises of mainly staff cost and benefits, travelling expenses and GIA management system. Roles and functions GIA provides assurance services 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, GIA also undertakes consulting role and investigative role. In its consulting role, GIA undertakes policy and procedures review, participate inworkinggroups toprovide input on policy development, systems development and several initiatives of the Group. Investigative audits are undertaken upon any allegation of improper, illegal and dishonest acts based on the request of the Management or Board. Development of Audit Plan When the audit plan is developed, consideration is given from the governance perspective as to how the whole company is managed at the Group level (Corporate Centres) and cascaded down to the business cluster and ultimately the operational level. Another consideration is from the risk perspective where high risk issues are prioritised during the development of the Annual Group Internal Audit Plan. Based on these assessments, priority ranking was assigned to each operating unit to arrive at the audit plan over three (3) years. The three (3) years audit plan is reviewed every year and forms the basis to derive the Annual Group Internal Audit Plan. Once the key audit areas are developed, the staff and resource allocation plan, budget estimates and staff development progress are established to support the Audit Plan. The Annual Group Internal Audit Plan is presented to Audit Committee. The Audit Committee reviews and challenges the adequacy of the audit scope, the resources allocated, the capability skill sets and makes recommendations before approving the Group Internal Audit Plan. Any recommendation of the Audit Committee is taken into the Group Internal Audit Plan. Once the Group Internal Audit Plan has been rolled out, the Audit Committee ensures that the coverage is responsive and robust to satisfy the changing level of risk and emerging areas of concern. Any deviation to the Group Internal Audit Plan is discussed and endorsed by the Audit Committee quarterly. Internal Audit Reporting All Group Internal Audit Report are issued directly to the Audit Committee with copies to the relevant management fot their action. On a quarterly basis, the Audit Committee is presented with the progress reporting of the audit findings, recommendations and management's corrective action implementation that was deliberatedat theEXCO. Any concerns raisedby the Audit Committee are to be addressed by GIA. The Audit Committee follows through any unresolved matters as part of the agenda in the next meeting. CORPORATE GOVERNANCE STATEMENT