FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 HOW WE ARE GOVERNED 85 GOVERNANCE AT FGV: ACCOUNTABILITY c. Evaluated the Quarterly Report on Consolidated Results for each quarter and was appraised on the analysis of the results in detail. Where required, the Audit Committee had provided direction and sought more details on the analysis of consolidated results to make its recommendation to the Board on the Quarterly Report. The Audit Committee also requested further details on several important matters for its deeper understanding and provided the necessary direction on the matters. d. Assessed the cashflow assumptions for the purpose of calculation of the Land Lease Liability to FELDA and its impact to the financial statements. e. Reviewed and endorsed policy revisions relating to accounting, finance, governance and internal control for the Board's approval. The Chairman of the Audit Committee held five private meetings with the external auditors to be briefed in detail on their quarterly reports to the Audit Committee. Evaluation of the external audit process and outcome a. Reviewed the external auditors' report on the outcome of the external audit process for the FYE 2016, which included internal control recommendations and management's response to the recommendations. b. Assessed the comprehensiveness of the audit plan of the external auditors for the FYE 2017 and ensured coordination with the various other audit firms apart from Messrs. PricewaterhouseCoopers PLT (PwC) who are involved in the external audit of several subsidiaries. c. Assessed the external auditors for their re-appointment for the FYE 2017 based on the established External Auditor Policy and recommended their re-appointment to the Board. The Audit Committee also considered the feedback from Management on their evaluation of the external auditors based on the services provided on the external audits for the FYE 2016. d. Assessed the external auditors audit fees for FYE 2017 and made its proposal to the Board for approval. e. Received written assurance from external auditors in their audit plan for the FYE 2017 confirming they are, and will maintain, independent throughout the conduct of audit engagement in accordance with the Terms of Reference of all relevant professional and regulatory requirement. f. Reviewed the engagement of non-audit services by the external auditors in accordance with the External Auditor Policy to ensure that their independence is maintained. Evaluation of the internal audit process and outcome a. Received and reviewed all 73 reports issued to all members of the Audit Committee by Group Internal Audit during the FYE 2017. These are reports from assignments undertaken from the internal audit plan and any unplanned investigation and special assignments undertaken by Group Internal Audit. b. Presented with and reviewed the following at every quarterly meeting during the FYE 2017: • A report summarising the main observations from the internal audit reports issued during the quarter. The Audit Committee gave direction to the Management on key matters requiring the Management's special and immediate attention. The Audit Committee has reported to the Board on these key matters. • A report on the progress of implementation of the approved internal audit plan for the FYE 2017, including the status of internal audit resources to support the implementation of the approved internal audit plan and development progress of the internal audit staff. • A report on the progress of implementation of the recommendations from internal audit reports issued. There were no matters requiring the attention of the Board from the progress reported.