ANNUAL REPORT 2015
41
CO R P O R AT E GOV E R NAN C E R E P O R T
(CONTINUED)
The Group’s internal controls and risk management systems are designed to manage rather than eliminate the risk of failure
to achieve business objectives, and can only provide reasonable, but not absolute, assurance that the Group will not be
adversely affected by any reasonably foreseeable event. The Board recognises that no system of internal controls and risk
management can provide absolute assurance.
Audit Committee (“AC”)
The AC comprises three members, namely, Dr Chew Kia Ngee, Mr Hwang Soo Jin and Mr Gn Hiang Meng, 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. Mr Gn Hiang Meng is a former senior banker with more than 30 years’ experience in
investment banking and hospitality industry.
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, evaluation of the performance and compensation 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 including but not restricted to issues of internal controls, suspected fraud
or irregularity. It has access to and full co-operation by the management and may invite any director or executive officer 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 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 was satisfied that amount of non-audit services provided by the external auditors
was 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/payable to PricewaterhouseCoopers LLP for FY 2015 was $343,000. The breakdown of fees paid/payable for
audit and non-audit services were $316,000 and $27,000 respectively. The AC has reviewed and is satisfied with the
independence and objectivity of the external auditors. It conducted a formal tender exercise during the year and after
reviewing comparable proposals, agreed to retain PricewaterhouseCoopers LLP as the Company’s auditors.
