FGV Annual Report 2018

78 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD GOVERNANCE AT FGV: ACCOUNTABILITY AUDIT COMMITTEE REPORT 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 the financial results of the Company and the Group. Evaluation of the External Audit Process and Outcome a. Reviewed the external auditors’ report on the outcome of the external audit process for FY2017, 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 FY2018 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 FY2018 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 FY2017. d. Assessed the external auditors audit fees for FY2018 and made its proposal to the Board for approval. e. Received written assurance from external auditors in their audit plan for FY2018 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. Evaluation of the Internal Audit Process and Outcome a. Received and reviewed all 77 reports issued to all members of the Audit Committee by Group Internal Audit during FY2018. 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 FY2018: • 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 FY2018, 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. c. Performed the following: • Reviewed and approved the internal audit plan for FY2019 together with the scope, functions, resources, budget and KPI of the Group’s internal audit function and reported to the Board accordingly. • Assessed theperformanceof theChief Internal Auditor, which included assessment of the effectiveness of the Group’s internal audit function with reference to the Institute of Internal Auditors’ International Professional Practices Framework. • With reference to assessment of the Chief Internal Auditor’s performance, increment, bonus adjustment and renewal of her contract of employment. The Chairman of the Audit Committee held four private meetings and discussions with the Chief Internal Auditor and her Management team to discuss developments which were relevant for the internal audit work, to give direction for a more effective audit plan, to be apprised of or give guidance on any major internal audit observations and any related matters towards improving the governance, risk and control processes of FGV Group.