ANNUAL REPORT
2016
.45
CORPORATE
GOVERNANCE
S$¡¯000
Audit Fees
110
Non-audit Fees
26
Having undertaken a review of the non-audit services provided during the year, the Audit Committee remains confident that
the objectivity and independence of the external auditors are not in any way impaired by reason of the non-audit services
which they provide to the Group. Moreover, the Audit Committee is satisfied that these services were provided efficiently by the
external auditors as a result of their existing knowledge of the business.
Whistle Blowing
The Audit Committee reviewed the adequacy of the whistle blower arrangements instituted by the Group through which staff and
external parties may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other matters.
The Group is committed to a high standard of ethical conduct and adopts a zero tolerance approach to fraud. The Group will
treat all information received confidentially and protect the identity and the interest of all whistle blowers. Anonymous disclosures
will be accepted and anonymity honoured. The policy is communicated via the Company¡¯s website under the ¡°Code of Conduct
and Ethics¡±.
The Audit Committee will address the issues and concerns raised and ensure that necessary arrangements are in place for the
independent investigation of issues raised by the whistle blowers and for appropriate follow up actions.
I NTERNAL AUD I T
Principle 13: The Company should establish an effective internal audit function that is adequately resourced and independent
of the activities it audits.
The Board recognises the importance of maintaining an internal audit function to maintain a sound system of internal controls
within the Group to safeguard shareholders¡¯ investments and the Group¡¯s assets. The Audit Committee has the responsibility
to review the adequacy of the internal audit function annually, review the internal audit program and ensure co-ordination
between internal auditor, external auditor and the management. The objective of the internal audit function is to provide an
independent review on the adequacy and effectiveness of the Group¡¯s internal controls and provide reasonable assurance to
the Audit Committee on the Group¡¯s controls and governance processes.
The internal audit function is outsourced to BDO LLP who reports primarily to the Audit Committee. BDO LLP is an international
auditing firm and they perform their work based on the BDO Global Internal Audit Methodology which is consistent with the
International Standards for the Professional Practice of Internal Auditing established by the Institute of Internal Auditors.
The Audit Committee reviews and approves the internal audit plan submitted by the internal audit function. On an on-going
basis, the internal audit function reports to the Audit Committee any significant weaknesses and risks identified in the course of
internal audits conducted. Recommendations to address internal control weaknesses are further reviewed by the internal audit
function based on implementation dates agreed with the management.
The Audit Committee undertook a review of the independence and objectivity of the external auditors through discussions with
the external auditors as well as reviewing the non-audit fees awarded to them. The Audit Committee received an audit report
from the external auditors setting out the non-audit services provided and the fees charge for FY2016. The aggregate amount
of fees paid to the external auditors for audit and non-audit services for FY2016 are as follows:
