Straco Corporation Limited • Annual Report 2014
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The Board, with the concurrence of the Audit Committee, is of the opinion that the Group’s internal controls and risk management systems are effective and
adequate to meet the financial, operational and compliance risks of the Group in its current business environment.
Principle 12: Audit Committee
The Audit Committee comprises of three independent non-executive Directors, Mr Lim Song Joo, Dr Choong Chow Siong and Mr Neo Poh Kok David. Mr
Lim Song Joo is the Chairman of the Audit Committee.
The Audit Committee holds periodic meetings to perform the following functions:
(a)
review with external auditors the audit plan, and the results of the external auditors’ examination and evaluation of the Group’s system of internal
controls;
(b)
review the financial statements and the external auditors’ report on those financial statements, before submission to the Board for approval;
(c)
review the co-operation given by our management to our auditors;
(d)
nominate the appointment and re-appointment of external auditors to the Board and approve the remuneration and terms of engagement of the
external auditors;
(e)
review interested person transactions;
(f)
review internal audit reports and internal audit plans of the Group; and
(g)
review the Group’s compliance with such functions and duties as may be required under the relevant statutes or the Singapore Exchange Securities
Trading Limited listing manual (“
Listing Manual
”), and by such amendments made thereto from time to time.
In addition to the above, the Audit Committee is empowered to 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 law, rule or regulation which are or is likely to have a material
impact on our Group’s operating results and/or financial position.
Each member of the Audit Committee shall abstain from voting on any resolutions and making any recommendations and/or participating in any
deliberations of the Audit Committee in respect of matters in which he is interested.
Pursuant to Rule 1207 (6)(b) and (6)(c) of the Listing Manual, the Audit Committee undertook the review of the independence and objectivity of the auditors
as well as reviewing the non-audit services provided by the incumbent auditors, and the aggregate amount of audit fees paid to them. During the current
financial year, the Company engaged KPMG Services Pte Ltd to provide corporate governance services at a fee of $30,000. The Audit Committee is satisfied
that neither their independence nor their objectivity is put at risk, and that they are still able to meet the audit requirements and statutory obligations
of the Company. Accordingly, the Audit Committee has recommended the re-appointment of the auditors at the forthcoming AGM of the Company. In
recommending the re-appointment of the auditors, the Audit Committee considered and reviewed a variety of factors including adequacy of resources,
experience of supervisory and professional staff to be assigned to the audit, and size and complexity of the Group, its businesses and operations.
CORPORATE GOVERNANCE
