FGV Annual Report 2018

82 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD GOVERNANCE AT FGV: ACCOUNTABILITY AUDIT COMMITTEE REPORT 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: Roles and Functions Group Internal Audit 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, Group Internal Audit also undertakes consulting role and investigative role. In its consulting role, Group Internal Audit undertakes advisory on governance, risk and control, policy and procedures review, participate in working groups to provide 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 is assigned to each operating unit to arrive at the audit plan over three years. The three 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 Group Internal Audit. The Annual Group Internal Audit Plan is presented to the Audit Committee. The above includes 26 internal auditors (37%) who are members of the Institute of Internal Auditors Malaysia. The total cost incurred for Group Internal Audit for FY2018 is RM11.3 million (FY2017: RM11.2 million). This amount comprises of mainly staff cost and benefits, travelling expenses and Group Internal Audit management system. 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 GP/CEO. 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 Professional Practices Framework and approved by the Audit Committee as affirmed through a Quality Assurance Review conducted by the Institute of Internal Auditors Malaysia in 2014. There was a total of 70 internal auditors as at 31 December 2018 covering the activities of the Group headed by Zalily Mohamed Zaman Khan, the Chief Internal Auditor. ZALILY MOHAMED ZAMAN KHAN* • Chief Internal Auditor Tenure: Since 1 March 2012 Skills and Qualifications: Zalily offers a wealth of expertise in accounting and internal audit. She has served various plantation companies in Malaysia, in addition to her experience with an accounting firm, and a telecommunications company. She received her Bachelor of Arts in Accountancy from the University of South Australia and is a Fellow of CPA Australia as well as a Chartered Accountant with the Malaysian Institute of Accountants. Zalily is also a Certified Internal Auditor from the Institute of Internal Auditors, US in addition to being certified in Control Self-Assessment as well as Risk Management Assessment from the Institute of Internal Auditors. She is also a Chartered Member from the Institute of Internal Auditors Malaysia. Directorship in other public companies: Nil Malaysian, 51 Professional status Percentage of total Auditors Professional accounting (ICAEW, CPA, ACCA, CA) or Certified Internal Auditor (CIA) or post- graduate (MBA or Masters) 17 Certified IS Auditor (CISA) 6 Graduate (Bachelor’s Degree) 69 Graduate pursuing professional accounting (ICAEW, CPA, ACCA, CA) or CIA 6 Others (Diploma) 2 Total 100 * Zalily Mohamed Zaman Khan is a Permanent Invitee to the Group Management Committee.