48 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Indofood Agri Resources Ltd Corporate Governance The AC & RMC has also reviewed and approved the Group external auditor’s audit plan for the year. The Committee was satisfied with the quality of the work carried out by the external auditor, which was in accordance with the Audit Quality Indicators Disclosure Framework issued by the ACRA. In view of the consistent performance by the external auditor, the AC & RMC recommended for Messrs Ernst & Young LLP to be reappointed for another term, subject to the shareholders’ approval at the next AGM. The Company complied with Rule 712 and Rule 715 (read along with Rule 716) of the SGX-ST Listing Manual in relation to its external auditors. These external auditors are disclosed on pages 120, 124 and 127 of this Annual Report. Internal Audit The IAD is an independent unit that operates separately from the business and corporate activities and its primary reporting line is to the AC & RMC. With unfettered access to all the Company’s documents, records, properties and personnel, the IAD possesses the appropriate standing within the Company to perform its functions effectively. Its operations are governed by the framework set out in the Internal Audit Charter and Code of Ethics approved by the AC & RMC and the Management. The IAD is adequately resourced, with 55 staff as at 31 December 2023. The Head of IAD reports directly to the AC Chairman on all internal audit matters. Mr Rogers H. Wirawan has served as the Group’s Head of IAD since 1 February 2011. Mr Wirawan started his career in 1993 with the public accounting firm, Hans Tuanakotta & Mustofa, a member of Deloitte Touche Tohmatsu. He was an auditor with the public accounting firm, Prasetio Utomo & Co., a member of Arthur Andersen & Co., from 1994 to 2002. Subsequently, he joined the public accounting firm, Purwantono, Sarwoko & Sandjaja, a member of Ernst & Young’s global organisation, until 2009. He graduated from Trisakti University, Jakarta, with a major in Accounting. Over the course of his career, Mr Wirawan has acquired sound expertise and experience in financial and operational audits, as well as extensive knowledge in plantation and refinery operations in Indonesia. The IAD is responsible for the internal audits of the Company’s operations in accordance with the guidelines and standards set out in the Professional Practice of Internal Auditing by the Institute of Internal Auditors. It prepares the internal audit schedules in consultation with the Management before submitting the audit plan to the AC & RMC for approval. As part of the audit plan, the IAD also performs independent reviews of the risk control measures identified by the ERM team to provide added assurance on the robustness of the ERM framework. The duties and responsibilities of the IAD in the area of risk management and internal controls are as follows: • Review the risk profile of the Company; • Identify new risks and exposures in the Company’s operations; • Evaluate the effectiveness and cost of the risk control measures in eliminating or mitigating risks and exposures to the Company; and • Establish and maintain the risk reporting and monitoring framework. In 2023, the IAD adopted a risk-based auditing approach that focused on material internal controls to identify and audit the high-risk areas of the strategic business units. The mitigation measures were subsequently proposed by the Management in consultation with the IAD. The findings and recommendations of the IAD, as well as the quarterly updates on the progress of the rectification measures, were presented to the AC & RMC. The AC & RMC was satisfied that the IAD had adequately monitored and managed the key risks and internal controls for the Company. In 2023, the AC & RMC also reviewed the adequacy of the internal audit function, including the IAD’s organisational structure, work scope and audit plans, and was satisfied that Mr Wirawan and the IAD have discharged their respective duties effectively. Additionally, the AC & RMC conducted an annual self-assessment to reflect its adequacy in fulfilling its duties as set out in the terms of reference. The Board conducted a separate review of the performance of the AC & RMC and was satisfied that the AC & RMC was well-qualified to discharge its duties and responsibilities in managing the risks and internal controls of the Company. Whistle-Blowing Policy The Company has established a whistle-blowing policy and system that provides clearly defined channels and procedures for employees, or other interested parties in the Company, to report any misconduct, including suspected frauds, corruption and unethical practices relating to the Company or its officers. The reports will be reviewed and acted upon by either the AC & RMC or the Exco and kept strictly confidential to protect the identities of the whistle-blowers. Complaints and feedback can be sent via a dedicated email at info.wb@ simp.co.id. All correspondences are documented, followed up and treated with strict confidentiality by the IAD.
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