Fraser & Neave Holdings Bhd Annual Report 2021

Apart from conducting the annual statutory audit, the auditors were also appointed to review the Condensed Interim Financial Statements for each of the three quarters ended 30 June 2021 in accordance with the relevant Malaysian Financial Reporting Standards and Bursa Securities Listing Requirements. Through the statutory audit and the quarterly reviews, the Audit Committee regularly engaged with the auditors, including at least one meeting without the presence of management, to ensure that the reviews and audits were robust, effective and consistent with professional auditing standards. During the financial year 2021, the Audit Committee had one meeting with the auditors without the presence of management. The Audit Committee reports that there was no significant matter of disagreement between the auditors and Management. To reinforce the independence and objectivity of the auditors, the Audit Committee was apprised of all non-audit services that the auditors might be called upon to perform. This was so in those circumstances where the auditors were best qualified and suitable to provide the required services given their comprehensive knowledge of the Group’s business operations, systems and processes. During the financial year, the amount incurred in respect of non-audit related fees amounted to RM439,629 (FY2020: RM191,800) and comprised of the following assignments: • Quarterly Reviews; • Review of Statement on Risk Management and Internal Control; and • Update of Transfer Pricing Documentation for subsidiaries. Other activities by the Audit Committee included a review and discussion of the annual audit plan to ensure that time allocated to audit the areas of high risks as highlighted in the Group’s risk matrices were adequately dealt with and the level of resources and experiences assigned to the examination were appropriate. Consistent with its examination, the external auditors performed review procedures to obtain reasonable assurance that the financial statements were free from material misstatement, whether caused by fraud or error. They reported that they did not note any instance indicating existence of fraud that might result in a material misstatement in the financial statements. The external auditors performed a limited assurance review of the Statement on Risk Management and Internal Control as required under the Bursa Securities Listing Requirements. GROUP INTERNAL AUDIT Group Internal Audit activities were performed by a team of six professional internal auditors, supervised by the Head, Internal Audit. The Head, Internal Audit was a Certified Practicing Accountant (CPA Australia) as well as a professional member of the Institute of Internal Auditors, Malaysia. Some of the internal audit sta! were also members of the Institute of Internal Auditors, Malaysia. In accordance with the FNHB IA Charter, Group Internal Audit has a reporting line direct to the Audit Committee enabling it to be independent of Management so as to ensure objectivity. The Head, Internal Audit reports functionally to the Chairman of the Audit Committee and administratively to the CEO, this further ensures impartiality and independence in execution of the role. Group Internal Audit did not have any direct operational responsibility or authority over any of the activities it audited or had engaged in any activity that might impair the internal auditor’s judgment. All the internal audit sta! had confirmed via an annual declaration that they were free from any relationships or conflict of interests which could impair their objectivity and independence. Group Internal Audit had adopted and complied with the International Standards for the Professional Practice of Internal Auditing (“IIA Standards”) issued by the International Internal Audit Standards Board. The Department maintained a quality assurance and improvement program to evaluate the internal audit activity’s conformance with the IIA Standards and the Code of Ethics. The quality assurance and improvement program included both annual internal self-assessment and an external assessment conducted by a qualified independent consulting firm, appointed once in four years. The Audit Committee continually evaluated the Group Internal Audit function to ensure its activities were performed independently and with impartiality and due professional care. The annual internal audit plan was approved by the Audit Committee to ascertain the extent of its scope and coverage of the Group’s activities, including the adequacy of Group Internal Audit’s sta&ng strategies in supporting the plan’s completion. Following the completion of audit reviews conducted, the audit reports and the corresponding key findings, audit recommendations and agreed action plans taken by Management were deliberated upon during the Audit Committee meetings. In accordance with the annual internal audit plan approved by the Audit Committee, Group Internal Audit conducted regular reviews of the governance and internal controls processes within the Group. The audits were performed using a risk-based approach and were consistent with the Group’s established framework in designing, implementing and monitoring of its control systems. Group Internal Audit had regular interactions with the Chairman of the Audit Committee, Senior Management, Risk Management and, when necessary, the external auditors. The Audit Committee had assessed the performance of the Group Internal Audit function during the financial year 2021 through an internal stakeholders’ satisfaction survey conducted by the Human Capital Department. Based on the survey findings, the Group Internal Audit function had been e!ective in performing its duties. Governance 137 Fraser & Neave Holdings Bhd ! Annual Report 2021