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annual report 2011
REPORT OF
THE DIRECTORS
Audit Committee (cont’d)
During the fnancial year, the AC held four meetings and carried out its functions in accordance with Section 201B(5) of the Singapore
Companies Act, Cap. 50, which include the following:
 Reviewing the quarterly and annual fnancial statements and the auditors’ report on the annual fnancial statements of the Company
before their submission to the Board of directors;
 Reviewing the audit plans of the internal and external auditors of the Company and ensuring the adequacy of the Company’s system
of accounting controls and the co-operation given by the Company’s management to the internal and external auditors;
 Reviewing the effectiveness of the Company’s material internal controls, including fnancial, operational and compliance controls and
risk management via reviews carried out by the internal auditors;
 Meeting with the internal and/or external auditors, other committees, and management in separate executive sessions to discuss any
matters that these groups believe should be discussed privately with the AC;
 Reviewing legal and regulatory matters that may have a material impact on the fnancial statements, related compliance policies and
programmes and any reports received from regulators;
 Reviewing the cost effectiveness and the independence and objectivity of the external auditors;
 Reviewing the nature and extent of non-audit services provided by the external auditors;
 Recommending to the Board of directors the nomination of the external auditors, approving the compensation of the external auditors,
and reviewing the scope and results of the audit;
 Reporting actions and minutes of the AC to the Board of directors with such recommendations as the AC considers appropriate; and
 Reviewing interested person transactions in accordance with the requirements of the Listing Manual of the Singapore Exchange
Securities Trading Limited.
Apart from the functions above, the AC will commission and review the fndings of internal investigations into matters where there is suspicion
of fraud or irregularity, or failure of internal controls or infringement of any Singapore Law, rule or regulation, which has or is likely to have a
material impact on the Group’s operating results and/or fnancial position.
The AC, having reviewed all non-audit services provided by the external auditors to the Group (if any), is satisfed that the nature and extent of
such services would not affect the independence and objectivity of the external auditors, and is pleased to confrm their re-appointment. The
AC has also conducted a review of interested person transactions.
The AC has also met with the internal and external auditors, without the presence of the Company’s management, at least once a year.
Further details regarding the AC are disclosed in the Corporate Governance Report of the Company’s Annual Report for the fnancial year
ended 31 December 2011.