51
A N N U A L R E P O R T 2 0 1 6
CORPORATE
GOVERNANCE
Guideline
Code and/or Guide Description Company¡¯s Compliance or Explanation
12.8
What are the AC¡¯s activities or
the measures it has taken to keep
abreast of changes to accounting
standards and issues which
have a direct impact on financial
statements?
In FY2016, the AC was briefed and updated by the EA on the changes to the accounting
standards which may have a direct impact on the financial statements.
Internal Audit
13.1
13.2
13.3
13.4
13.5
Does the Company have an internal
audit function? If not, please
explain why. Please provide details
of the Company¡¯s internal audit
function, if any.
The Company¡¯s internal audit function is outsourced to a qualified public accounting
firm, WLA Regnum Advisory Services Pte Ltd, that reports directly to the AC Chairman
and administratively to the CEO. The IA was appointed pursuant to the approval of the
AC, which also approves the removal, evaluation and compensation of the IA. The IA is
expected to meet or exceed the standards set by nationally or internationally recognised
professional bodies including the Standards for the Professional Practice of Internal
Auditing set by The Institute of Internal Auditors.
The IA has unrestricted direct access to all the Company¡¯s documents, records, properties
and personnel and the AC, to which the IA reports directly. The IA plans its scope of
internal audit work in consultation with the AC, and submits its annual internal audit plan to
the AC for approval.
The IA has adopted a risk-based auditing approach that focuses on material internal
controls, including financial, operational and compliance controls and overall risk
management of the Group. The AC has reviewed the effectiveness of the IA and is satisfied
that the IA is adequately resourced and has the appropriate standing within the Group to
fulfil its mandate.
