35
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)
The AC has established the whistle-blowing policy where staff of the Group may, in confidence, raise concerns
about possible improprieties in matters of financials that might have a significant impact on the Group, such
as actions that may lead to incorrect financial reporting, unlawful and/or otherwise amount to serious improper
conduct according to Company policy.
K)
INTERNAL AUDIT
- Principle 13: Setting up independent internal audit function
The Group outsources its internal audit function to Yang Lee & Associates (“
YLA
” or “
IA
”). The IA reports directly
to the AC and internal control weaknesses identified during the internal audit reviews and the recommended
corrective actions are reported to the AC periodically.
The AC reviews and approves the internal audit scope and plan to ensure that there is sufficient coverage of the
Group’s activities. It also oversees the implementation of the internal audit plan and ensures that Management
provides the necessary co-operation to enable the IA to perform its function.
The IA is guided by the International Standards for the Professional Practice of Internal Auditing (IIA Standards)
issued by the Institute of Internal Auditors.
The AC annually reviews the adequacy of the internal audit function to ensure that the internal audits are
performed effectively.
The IA completed one review during the financial year ended 31 December 2014 in accordance with the internal
control testing plan developed and approved by the Board under the Group Risk Management Framework.
The findings and recommendations of the internal auditors, management’s responses, and management’s
implementation of the recommendations has been reviewed and discussed with AC.
The AC meets with the IA without the presence of management at least once annually.
L)
SHAREHOLDER RIGHTS AND RESPONSIBILITIES
- Principle 14: Treatment to all shareholders fairly and equitably
The Group’s corporate governance culture and awareness promotes fair and equitable treatment of
all shareholders.
The Group is committed to providing shareholders with adequate, timely and sufficient information pertaining to
changes in the Group’s business which could have a material impact on the Company’s share price.
Shareholders are given the opportunity to participate effectively and vote at general meetings of the Company
where relevant rules and procedures governing the meetings are clearly communicated.
