FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
31
AUDIT COMMITTEE
Principle 12 The Board should establish an Audit Committee (“AC”) with written terms of reference which
clearly set out its authority and duties.
The role of the Audit Committee is to assist the Board with regard to the discharge of its responsibility to safeguard the
Group’s assets, maintain adequate accounting records, develop and maintain effective systems of internal controls with
an overall objective to ensure that the management has created and maintained an effective control environment in the
Company.
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
CORPORATE GOVERNANCE STATEMENT
(CONT’D)
