The system of risk management is embedded in the internal control system of the Manager to address on-going changes
and challenges and to reduce uncertainties to PLife REIT. The ERM Committee, assisted by the external risk consultant,
will ensure the adequacy and efficiency of the internal controls. As such, the internal control system will also assist the
Board and the Audit Committee in compliance with the Code of Corporate Governance and the Listing Manual. The Audit
Committee and the Board will review the adequacy and efficiency of the risk management system and internal controls
on an annual basis.
The internal control and risk management functions conducted by the auditors and the ERM Committee respectively are
evaluated by the Manager’s key executives, and are reported to the Audit Committee for review. Based on the up-to-date
evaluation of the controls by the auditors and the ERM Committee, the Chief Executive Officer and the Chief Financial
Officer of the Manager provide an assurance to the Board that the financial records of PLife REIT have been properly
maintained and the financial statements give a true and fair view of the operations and finances of PLife REIT, and the
Manager’s internal controls and risk management systems are effective and adequate for the year under review.
Nonetheless, the Audit Committee will:
(a)
satisfy itself, by such means as it shall consider appropriate, that adequate counter measures (i.e. mechanisms
and processes, such as sound internal control systems) are in place to identify and mitigate any material business
risks associated with the Manager and PLife REIT;
(b)
ensure that a review of the effectiveness and adequacy of the Manager’s internal controls, including financial,
operational, compliance and information technology controls, and risk management policies and systems, is
conducted at least annually. Such review can be carried out by internal auditors, external auditors and/or the ERM
Committee;
(c)
ensure that the internal control recommendations made by internal auditors, external auditors and/or the ERM
Committee have been implemented by the Manager; and
(d)
ensure that the Board is in a position to comment on the adequacy of the internal controls of the Manager.
Based on the Audit Committee’s review, the Board with the concurrence of the Audit Committee is of the opinion that
there are adequate and effective internal controls (including financial, operational, compliance and information technology
controls) and risk management systems in the Manager.
AUDIT COMMITTEE
Principle 12: The Board should establish an Audit Committee with written terms of reference which clearly set out its
authority and duties.
The Audit Committee comprises Mr. Tan Bong Lin (Chairman of the Audit Committee), Mr. Lim Kok Hoong and Mr. Puah
Tuan Soon Benson, all of whom are independent non-executive directors. The members of the Audit Committee collectively
have recent and relevant expertise or experience in financial management and are appropriately qualified to discharge
their responsibilities.
The role of the Audit Committee is to monitor and evaluate the adequacy of the Manager’s internal controls and the
effectiveness of the Manager’s internal audit function. The Audit Committee also reviews the fairness and accuracy of
information prepared for inclusion in the financial reports and statements, and is responsible for the nomination of external
auditors and reviewing the adequacy of external audits in respect of cost, scope and performance.
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PA R K WAY L I F E R E I T
CORPORATE
GOVERNANCE
