FGV Annual Report 2020

212 FGV HOLDINGS BERHAD Annual Integrated Report 2020 How We Are Governed: Accountability The fees paid/payable to the external auditor, PwC, in FY2020 were as follows: Audit Partner Rotation Audit Delivery and Reporting Removal of External Auditor Keeping Updated on Relevant Information Engagement of External Auditor for Non-Audit Services FGV has adopted the latest ruling of the MIA on audit partner rotation which allows rotation of the lead and signing partner every seven years, updating the earlier FGV policy of five years. When rotated off the audit, the partner shall not be a member of the engagement team or be a key audit partner on the engagement for two consecutive years. The current lead and signing partner of PwC has been assigned to the Group for seven years since the annual audit of the statutory Financial Statements for FY2014. With the adoption of the latest ruling by the MIA, the Audit Committee agreed to extend the current PwC lead and signing partner for FGV for another year. Upon approval of the audit fees by the Board, the external auditor’s engagement letter shall be signed by the GCFO. The deliverables and reports from the audit of the statutory Financial Statements shall be communicated and agreed upon through the Group Audit Plan on an annual basis by the third quarter of every financial year. A Management representation letter shall be issued to the external auditor upon completion of the statutory audit for each company under the Group. In the event of any removal or resignation of the external auditor, the Audit Committee shall consider the request and reason for the removal or resignation to make its recommendation to the Board. The selection of a new external auditor shall be conducted through invitation for a closed tender procurement process with the other top three accounting firms through the Group’s normal Procurement Policies and Procedures. The termination shall be approved by the FGV shareholders at the Annual General Meeting together with the proposal for the appointment of a new external auditor. From assessment conducted by the Audit Committee on PwC’s performance in FY2020, the Audit Committee has concluded that PwC remains suitable for appointment as external auditor and recommend their reappointment for FY2021. The external auditor updates the Audit Committee members on changes to accounting standards and issues related to financial reporting through quarterly meetings. The external auditor may be engaged to perform permitted audit or non-audit services as detailed in the External Auditor Policy provided the engagement does not impair the independence of the external auditor in its audit of the statutory Financial Statements. The External Auditor Policy also specifies prohibited non-audit services which the external auditor shall not be engaged for. All services to be awarded to the external auditor shall be subjected to independent assessment and monitoring. The engagement of permitted non-audit services shall be reviewed and approved by the Audit Committee where the annual fees for non- audit services exceed 25% of the annual fee for audit of the statutory Financial Statements of the Group. A report on the engagement of the external auditor for all other audit and non-audit services together with the fees for each engagement shall be reported to the Audit Committee every six months or as and when the total of non-audit service fees exceeds the 25% threshold. Audit Fees • PwC Malaysia • Member firms of PwC International Limited (PwCIL) Audit-Related Fees • PwC Malaysia and member firms of PwCIL • Other non-audit fees paid to PwC Malaysia and member firms of PwCIL 4,106 1,449 1,484 602 FEES PAID/PAYABLE TO PWC IN 2020 Total RM’000 7,641