34
Food Empire Holdings Limited Annual Report 2014
CORPORATE GOVERNANCE
J)
AUDIT COMMITTEE (cont’d)
- Principle 12: Establishment of AC with written terms of reference (cont’d)
g)
the adequacy and effectiveness of the Group’s material internal controls, including financial, operational and
compliance controls and risk management via reviews carried out by the internal auditors;
h)
the audit plans of the internal auditors; and
i)
the results of their internal audit.
Apart from the duties listed above, the AC has the authority to commission and review the findings of internal
investigations into any matter where there is suspected fraud or irregularity, or failure of internal controls or
infringement of any Singapore law, rule or regulation which has or is likely to have a material impact on the Group’s
operating results or financial position.
In performing its functions, the AC has:-
a)
full access to and co-operation from the management and has full discretion to invite any Director and
executive officer to attend its meetings;
b)
been given reasonable resources to enable it to discharge its duties and responsibilities properly; and
c)
the expressed authority to conduct investigation into any matters within its terms of reference.
During the year, the AC held 4 meetings.
The AC has reviewed the internal procedures set up by the Company to identify and report, and where necessary,
seek approval for interested person transactions, and with the assistance of the management, reviewed interested
person transactions. The AC is of the opinion that the internal procedures have been complied with.
The AC has reviewed the non-audit services provided by the external auditors and is satisfied with the
independence of the external auditors.
The AC meets with the external auditors without the presence of management at least once annually.
Different auditors have been appointed for some of the overseas subsidiaries. The names of these audit firms are
disclosed under Note 14 of the financial statements. This matter has been reviewed by the AC and the Board
and both are satisfied that these appointments did not compromise the standard and effectiveness of the audit
of the Group.
The Group has complied with Rules 712 and 716 of the SGX-ST Listing Manual.
The AC has recommended to the Board of Directors that the Auditors, Ernst & Young LLP, Public Accountants
& Chartered Accountants, Singapore, be nominated for re-appointment as Auditors at the forthcoming Annual
General Meeting of the Company.
