MSM Malaysia Holdings Berhad Annual Report 2019

A training on the Malaysian Financial Reporting Standards (MFRS) Training was conducted by Messrs. PricewaterhouseCoopers PLT on 29 November 2019. The AC Chairman was updated on the MFRS that impact MSM. Further details on the training attended by AC members during FY 2019 are detailed out in the Corporate Governance Overview Statement under Directors’ Training on page 77 of this Annual Report. AUDIT COMMITTEE EVALUATION For year of assessment of 2018, Board Evaluation Assessment was carried out in 2019 which encompassed the performance of the AC and the AC Chairman as well as the independence of the Independent Directors. The assessment focused on how effective the AC has conducted its activities. Based on the evaluation performed, the AC had effectively and professionally discharged its duties and responsibilities to the benefit of the Company. For year of assessment of 2019, the AC’s Evaluation is in progress and will be disclosed in the 2020 Annual Report. INTERNAL AUDIT The internal audit role for the MSM Group is undertaken by the Group Internal Audit (GIA) of the holding company, FGV Holdings Berhad (FGV). The FGV Chief Internal Auditor reports functionally directly to the AC of MSM. The conduct of GIA is based on a Group Internal Audit Charter, which was established consistent with the requirements of Institute of Internal Auditor’s International Professional Practise of Framework and affirmed through a Quality Assurance Review conducted by Messrs. Ernst & Young Advisory Services Sdn Bhd in 2019. The FGV Chief Internal Auditor, Puan Zalily Mohd. Zaman Khan, is a fellow member of CPA Australia, a Chartered Accountant with the Malaysian Institute of Accountants, a professional member of the Institute of Internal Auditors Malaysia, a Certified Internal Auditor of the Institute of Internal Auditors (IIA), USA and holds an accounting degree from University of South Australia. She holds a Certification in Control Self-Assessment and a Certification in Risk Management Assurance awarded by the IIA in USA and had served as a member of the IIA Malaysia’s Research and Technical Advisory Committee for several years. She has accumulated almost 30 years of experience in various industries. The FGV Chief Internal Auditor leads the internal audits across MSM Group. Four internal auditors comprising of a Senior General Manager, a Manager and one team of two persons from the FGV GIA have been specifically assigned for audits of MSM Group throughout the financial year. The team may be supplemented with personnel from other segments of GIA’s organisation structure where it is deemed required. MSM also has the benefit of the FGV IT audit team that perform internal audit work related to information technology. The total number of internal auditors allocated is appropriate and sufficient in terms of the mix of knowledge, skills and other competencies in line with the scope of the audit and size of MSM Group. Composition of the internal auditors and the corresponding professional status are as follows: Professional Status No. of Auditors Professional accounting (ICAEW, CPA, ACCA, CA) or Certified Internal Auditor (CIA) or post graduate (MBA or Masters) 2 Graduate 2 Total 4 The above includes two internal auditors who are members of the Institute of Internal Auditors Malaysia. The total cost incurred for FGV GIA for the FY 2019 was RM1,175,579 (2018: RM 1,119,599). OBJECTIVITY AND INDEPENDENCE OF GIA FGV GIA has undertaken a survey of the relationship of its internal auditors in October 2019 and noted that the internal auditors are free from any relationship or conflicts of interests which could impair their objectivity and independence. GIA undertakes a survey of the relationship of its auditors once every two years and ensures that the rotation of internal auditors does not result in any compromise of objectivity and independence. 87 CORPORATE GOVERNANCE 07