Shaped By High Standards Of Governance 150 FGV HOLDINGS BERHAD Effective Audit and Risk Management Principle B: KEY MATTERS CONSIDERED BY THE COMMITTEE The AC Chairman updated the Board on matters deemed to be of major importance deliberated at the AC meetings and its recommendations. The copies of confirmed minutes of each AC meeting were also circulated to the Board for noting at the next practicable Board meeting. Among the significant matters that the AC reported to the Board were the following: RELATIONSHIP WITH THE EXTERNAL AUDITOR FGV has an External Auditor Policy and Procedures which detailed out the following relating to the relationship with the External Auditor: • Appointment and re-appointment of the External Auditor • Effectiveness of the External Auditor • Assessing independence of the External Auditor • Audit partner rotation • Audit delivery and reporting • Engagement of the External Auditor for non-audit services • Removal of the External Auditor The summary of the External Auditor Policy and Procedures can be found in Practice 9.3 of the CG Report 2022. SIGNIFICANT MATTERS HOW THE AC PROVIDED OVERSIGHT ON THESE MATTERS Reviewed and recommended to the Board the quarterly financial results and year-end Financial Statements of FGV and the Group, focusing particularly on changes in financial reporting standards, including assessing their impacts on the Financial Statements, reasons for fluctuations between periods, explanations for achievement of budgets, forecasts and matters requiring Management’s judgement, especially assets recoverability, accounting practices, unusual events and significant adjustments. 1 Financial Reporting 2 Internal Control • Provided direction for internal control improvements on matters reported by the Group Internal Audit. Encouraged management to prioritise the improvements based on the observations reported in the Group Internal Audit reports. • Reviewed and recommended to the Board the revised Group’s LOA, Group Finance Policies and Procedures and External Auditor Policy and Procedures. Considered whether the recurrent related party transactions were undertaken at commercial terms in accordance with established procedures and within the mandate provided by the shareholders. 3 Recurrent Related Party Transactions Guidance on matters relating to cyber security, big data analytics, ESG reporting and tax framework. 4 Key Critical Guidance
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