The responsibilities of the AC include the following:
–
review and recommend to the Board the release of the quarterly and full year financial statements;
–
review the independence and objectivity of the external auditors, their appointment, re-appointment
and audit fee;
–
review and approve both the internal audit and the external auditor’s scope and plan to assure
completeness of coverage and effective use of audit resources and where the auditors also supply a
substantial volume of non-audit services to the Company, review the nature and extent of non-audit
services performed by them to ensure that the independence of the auditors would not be affected;
–
review the significant financial reporting issues and judgments so as to ensure the integrity of the financial
statements and any formal announcements relating to the Company’s financial performance;
–
review and report to the Board the internal audit plan, oversees and reviews the adequacy and
effectiveness of the internal control functions and evaluate the level of risks and assess the system of
ensuring integrity of financial reporting, steps taken by Management to minimize or control Company’s
exposure to such risks and assessing financial risk management;
–
review major findings on internal audit during the year and Management’s responses thereto, difficulties
encountered during the course of the audit and compliance with relevant professional internal audit
standards with the Director of Internal Audit and Management; and
–
review interested person transactions as required under the Listing Manual of the Singapore Exchange
Securities Trading Limited Listing Manual (“SGX-ST”).
The AC makes recommendations to the Board for approval by Shareholders, the appointment, re-appointment
and removal of the Company’s external auditors. It also reviews and approves the remuneration and terms of
engagement of the internal audit firm and the external auditors.
The AC reviews the Group’s risk assessment and, based on the auditors’ reports and management controls in
place throughout the Group, is satisfied that there are adequate internal controls, including financial, operational,
compliance and information technology controls, and risk management systems in the Group.
The AC has full access to the external and internal auditors and has full authority to invite any Director or
executive officer to its meetings. The AC is authorized to have full and unrestricted access and co-operation of the
Company’s Management, personnel, records and other information as required to discharge its responsibilities.
The AC has reviewed all non-audit services provided by the external auditors to the Company and is satisfied
that the extent of such services provided will not prejudice the independence and objectivity of the external
auditors. The amount paid and payable to external auditors for audit and non-audit services fees were $408,447
and $72,805, respectively, for the financial period under review. The re-appointment of the external auditors
will be subject to approval by way of an ordinary resolution of shareholders at the Company’s Annual General
Meeting, to be held on 27 April 2016.
I N N O T E K L I M I T E D
A N N U A L R E P O R T 2 0 1 5
28
CORPORATE
GOVERNANCE REPORT
