ANNUAL REPORT 2014
41
Audit Committee (“AC”)
The AC comprises three members, namely, Dr Chew Kia Ngee, Mr Hwang Soo Jin and Dr Lee Suan Yew, all of whom are
Non-executive independent Directors. The chairman of the AC, Dr Chew Kia Ngee, is a senior accountant with over 40 years’
experience in the profession. Mr Hwang Soo Jin is a seasoned financial professional and has over 40 years of financial
management expertise.
The principal responsibilities of the AC include:
• reviewing the audit plans with the internal and external auditors;
• reviewing the audit report of the external auditors and the results of the internal audit procedures;
• recommending the appointment, re-appointment and removal of external auditors and approving the compensation
and terms of engagement of the external auditors;
• reviewing annually the independence and objectivity of the external auditors, the cost effectiveness of the audit,
and the nature and extent of non-audit services;
• approving the hiring, removal and evaluation of the performance of Group Internal Audit Manager;
• ensuring that the internal audit function is adequately resourced and has appropriate standing within the Group;
• reviewing the adequacy of the internal audit function annually;
• reviewing the Group’s quarterly and full‑year results and annual financial statements prior to approval by the Board,
and the appropriateness and consistency of accounting principles and policies adopted across the Group
,
including
significant financial reporting issues and judgements;
• reviewing the adequacy and effectiveness of the Company’s system of internal controls, including accounting controls,
and addressing financial, operational, compliance and information technology risks and risk management processes;
• reviewing interested person transactions; and
• reviewing whistle-blowing reports.
The AC has full authority to investigate any matter concerning issues of internal controls, suspected fraud or irregularity. It
has full access to the management and may invite any staff to attend its meetings. The AC adopts key principles from the
“Guidebook for Audit Committee in Singapore”, issued by the Audit Committee Guidance Committee in Singapore in 2008
and updated in 2014.
During the year, the AC held four meetings during which it performed its responsibilities as required under its charter and as
set out above. It met the external and internal auditors separately in the absence of management and noted that there was
no adverse feedback.
In reviewing non-audit services, the AC is satisfied that amount of non-audit services were not material and would not impair
the independence of the external auditors. The AC has confirmed that the Company has complied with Rule 712 and Rule
715/716 of the Singapore Exchange Securities Trading Limited (“SGX-ST”) Listing Manual which set out the requirements
on the appointment of the auditor. The AC has recommended to the Board the re-appointment of PricewaterhouseCoopers
LLP as the Group’s auditor for the ensuing year. The aggregate amount of fees paid to PricewaterhouseCoopers LLP for FY
2014 was $399,000. The breakdown of fees paid for audit and non-audit services were $393,000 and $6,000 respectively.
The AC members are continuously updated by management and auditors on changes to accounting standards and issues
which have a direct impact on financial statements, compliance with legislation and accounting-related matters.
Whistle‑Blowing Policy
The Group has in place a whistle-blowing policy and process under which employees may report to the AC any improprieties or
suspected wrong-doing by management or other staff without fear of reprisal. All reports received are accorded confidentiality
and independently investigated by the whistle‑blowing unit, comprising the Group Human Resource Manager and Group
Internal Audit Manager. Details of the whistle‑blowing policy are posted on the Company’s intranet. New employees are
briefed on the policy during their orientation.
CORPORATE GOVERNANCE REPORT
(CONTINUED)
