The Board has reviewed and is satisfied that the members of the ARMC are appropriately qualified to discharge their responsibilities,
with Mr Koh Lian Huat having the requisite accounting or related financial management expertise or experience. The members of the
ARMC are scheduled to meet to review the quarterly results before announcement and may meet at other times as when required. The
functions of the ARMC include the following:
•
review with the external auditors the audit plan, their audit report, their management letter and our Management’s corresponding
response;
•
review with independent internal auditors the internal audit plan and their evaluation of the adequacy of our internal controls;
•
review the internal controls (including financial, operational and compliance controls and risk management policies and systems
established by the Management) and procedures and ensure co-ordination between the external auditors and our Management,
reviewing the assistance given by our Management to the auditors, and discuss problems and concerns, if any, arising from the
audits, and any matters which the auditors may wish to discuss (in the absence of our Management where necessary);
•
consider and recommend the appointment or re-appointment of the external auditors and matters relating to resignation or
dismissal of the auditors, review the independence and objectivity of the external auditors annually;
•
review transactions falling within the scope of Chapter 9 and Chapter 10 of the Listing Manual (if any);
•
review arrangements by which our staff may, in confidence, raise concerns about possible improprieties in matters of financial
reporting and to ensure that arrangement are in place for the independent investigations of such matter and for appropriate
follow-up;
•
commission and review the findings of internal investigations into matters where there is any suspected fraud or irregularity or
failure of internal controls or infringement of any Singapore laws, rules or regulations which have or are likely to have a material
impact on the Company’s operating results and/or financial position; and
•
determine the Company’s levels of risk tolerance and risk policies, and oversee Management in the design, implementation and
monitoring of the risk management and internal control systems
Annually, the ARMC meets with the external auditors, and with the internal auditors, without the presence of the Management. ARMC
members keep abreast of changes to accounting standards and important accounting issues with continuing education. In addition,
the external auditors update the ARMC on the changes to accounting standards and issues which have a direct impact on financial
statements to the Company.
The ARMC and the Board confirmed that in appointing the auditing firms for the Company, subsidiaries and significant associated
companies, the Group has complied with Rules 712(2)(a) and 715 of the Listing Manual issued by SGX-ST in relation to its auditors.
The ARMC has undertaken a review of all non-audit services provided by the external auditors during the financial year, and in the
ARMC’s opinion, the provision of these services does not impair the independence of the external auditors. The ARMC had recommended
to the Board the re-appointment of Messrs Ernst & Young LLP as the external auditors of the Company at the forthcoming AGM.
The fees payable to auditors is separately disclosed in the audited financial statements in this Annual Report.
The Group has implemented a whistle-blowing policy. The policy aims to provide an avenue for employees to raise concerns about
misconducts in the Group and at the same time assure them that they will be protected from victimization for whistle blowing in good
faith. The ARMC will review any cases for significance and ensure adequacy and independence of investigation actions and resolutions.
Risk management
The Management regularly reviews its Group’s business and operational activities and to identify areas of significant business risk as
well as take appropriate measures to manage and mitigate these risks.
CORPORATE GOVERNANCE REPORT
Hock Lian Seng Holdings Limited
Annual report 2014
23
