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FRENCKEN GROUP LIMITED
ANNUAL REPORT 2014
AUDIT COMMITTEE (CONT'D)
Principle 12 (Cont'd)
All Audit Committee members are independent Non-Executive Directors. The Audit Committee comprises the following
members:
Ling Yong Wah (Chairman & Lead Independent Director)
Chia Chor Leong (Independent Director)
Yeo Jeu Nam (Independent Director)
The Audit Committee meets at least quarterly to discuss and review the following where applicable:
(a) review the scope and results of the audit and its cost effectiveness, and the independence and objectivity of the
independent auditors;
(b) review with the independent auditors the audit plan, their evaluation of the system of internal controls relevant to the
audit, their audit report, their management letter and our management’s response;
(c) review with the internal auditors, the scope and the results of internal audit procedures and their evaluation of the
overall internal control systems including financial, operational and compliance controls and risk management;
(d) review the quarterly, half yearly and annual financial statements before submission to the Board for approval, focusing
in particular, on significant financial reporting issues and judgements so as to ensure the integrity of the consolidated
financial statements of the Group and any formal announcements relating to the Company’s financial performance,
changes in accounting policies and practices, major risk areas, significant adjustments resulting from the audit, the
going concern statement, compliance with accounting standards as well as compliance with any stock exchange and
statutory/regulatory requirements;
(e) review the internal controls and procedures and ensure co-ordination between the independent auditors and
management, reviewing the assistance given by the management to the auditors, and discuss problems and concerns,
if any, arising from the interim and final audits, and any matters which the auditors may wish to discuss (in the absence
of our management);
(f) review and discuss with the independent auditors any suspected fraud or irregularity, or suspected infringement of any
relevant law, rules or regulations, which has or is likely to have a material impact on the Group’s operating results or
financial position, and management’s response;
(g) review the adequacy of the Group’s internal financial controls, operational and compliance controls and risk management
policies and systems;
(h) consider the appointment or re-appointment of the independent auditors and matters relating to resignation or dismissal of
the auditors;
(i) review and recommend to the Board transactions falling within the scope of Chapter 9 of the Listing Manual;
(j) undertake such other reviews and projects as may be requested by the Board and will report to the Board its findings
from time to time on matters arising and requiring the attention of the Audit Committee; and
(k) generally undertake such other functions and duties as may be required by statute of the Listing Manual, and by such
amendments made thereto from time to time. In addition, all future transactions with related parties shall comply with
the requirements of the Listing Manual. As required by paragraph 1(9)(e) of Appendix 2.2 of the Listing Manual, the
Directors shall abstain from voting in any contracts or arrangements or proposed contracts or arrangements in which
they have a personal material interests.
The Audit Committee has the power to conduct or authorise investigations into any matters within the Audit Committee’s
scope of responsibility. The Audit Committee is authorised to obtain independent professional advice if it deems necessary
in the discharge of its responsibilities. Such expenses are to be borne by the Company.
CORPORATE GOVERNANCE STATEMENT
(CONT’D)
