FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 133 SIGNIFICANT MATTERS CONSIDERED BY THE COMMITTEE The Chairman of the AC provided the Board with updates on critical issues discussed during AC meetings and the recommendations made therein. Additionally, confirmed minutes from each AC meeting were distributed to the Board for review at the earliest possible opportunity. Significant matters reported by the AC to the Board included: RELATIONSHIP WITH THE EXTERNAL AUDITOR The Group adheres to a comprehensive External Auditor Policy and Procedures, providing a clear framework for the association with the External Auditor. The policy outlines various aspects related to this relationship, ensuring transparency and effectiveness in the audit process. Key elements covered by the policy include: • Appointment and Re-appointment: Clearly defined procedures for the selection and re-appointment of the External Auditor. • Effectiveness Assessment: A structured approach to evaluate the effectiveness of the External Auditor. • Independence Assessment: Rigorous assessment measures to ensure the independence of the External Auditor. • Audit Partner Rotation: Policies governing the rotation of audit partners to maintain objectivity and fresh perspectives. • Audit Delivery and Reporting: Guidelines for the audit process, ensuring thoroughness in delivery and reporting. • Engagement for Non-audit Services: Procedures regulating the engagement of the External Auditor for non-audit services. • Removal of the External Auditor: Processes outlining the circumstances and procedures for the removal of the External Auditor. For a concise overview of the External Auditor Policy and Procedures, please refer to Practice 9.3 in the CG Report 2023. PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT SIGNIFICANT MATTERS HOW THE AC PROVIDED OVERSIGHT ON THESE MATTERS Financial Reporting Reviewed and recommended to the Board the quarterly financial results and yearend 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. Internal Control • Provided direction for internal control improvements on matters reported by the GIA. Encouraged management to prioritise the improvements based on the observations reported in the GIA reports. • Reviewed and recommended to the Board the revised Group’s LOA, Group Finance Policies and Procedures and External Auditor Policy and Procedures. Recurrent Related Party Transactions Considered whether the recurrent related party transactions were undertaken at commercial terms or arm’s length, in the best interest of minority shareholders in accordance with established procedures and within the mandate provided by the shareholders. Key Critical Guidance Guidance on matters relating to cyber security, big data analytics, and ESG reporting. Tax Governance & Planning Tax Corporate Governance Framework for FGV Group of Companies
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