Group Overview Financials Other information Sustainability and Governance Operation and Financial Review Annual Report 2024 49 CORPORATE GOVERNANCE Messrs Ernst & Young LLP was the external auditor appointed by the Company in 2024. In accordance with Rule 1207(6)(a) of the SGX-ST Listing Manual, the audit and non-audit fees paid to the external auditor for the financial year ended 31 December 2024 are disclosed on page 103 of this Annual Report. The AC & RMC evaluated the independence and objectivity of the external auditor through a review of the audit and non-audit fees awarded to the auditors during the financial year. The AC & RMC was satisfied that the independence and objectivity of the external auditor were not impaired by their provision of non-audit services. The external auditor has also declared its independence to the AC & RMC. The AC & RMC has also reviewed and approved the 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 125, 129 and 131 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 92 staff as at 31 December 2024. The Head of IAD reports directly to the AC & RMC 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, KAP Hans Tuanakotta & Mustofa, a member of Deloitte Touche Tohmatsu. He was an auditor with the public accounting firm, KAP Prasetio Utomo & Co., a member of Arthur Andersen & Co., from 1994 to 2002. Subsequently, he joined the public accounting firm, KAP Purwantono, Sarwoko & Sandjaja, a member of Ernst & Young’s global organisation, from 2002 to 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 Group; • Identify new risks and exposures in the Group’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 2024, 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 2024, 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.
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