(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.
Taking into account the abovementioned evaluation of the controls by the auditors and the external risk consultant, the
review by the Manager’s ERM Committee and executive director, and the assurance received from the Chief Executive
Officer and the Chief Financial Officer of the Manager, the Board in concurrence with the view of the AC, is of the opinion
that taking into account the nature, scale and complexity of the Manager’s operations, PLife REIT’s financial, operational,
compliance and information technology controls, and risk management systems were adequate and effective as at
31 December 2015.
AUDIT COMMITTEE
Principle 12:
The Board should establish an AC with written terms of reference which clearly set out its authority and
duties.
The AC comprises Mr. Tan Bong Lin (Chairman of the AC), Mr. Lim Kok Hoong and Mr. Puah Tuan Soon Benson, all of
whom are independent non-executive directors. The members of the AC collectively have recent and relevant expertise
or experience in financial management and are appropriately qualified to discharge their responsibilities.
The role of the AC is to monitor and evaluate the adequacy of the Manager’s internal controls and the effectiveness of the
Manager’s internal audit function. The AC 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.
In appointing the audit firms for the Group, the AC is satisfied that PLife REIT has complied with the Listing Rules 712 and
715 of the Listing Manual.
The AC has a set of terms of reference defining its scope of responsibility and authority, which includes the following:
(a)
monitoring the procedures established to regulate related party transactions, including ensuring compliance with
the provisions of the Listing Manual relating to “interested person transactions” and the provisions of the Property
Funds Appendix relating to “interested party transactions”;
(b)
reviewing arrangements by which employees of the Manager may, in confidence, raise concerns about possible
improprieties in matters of financial reporting or other matters and ensuring that arrangements are in place for such
concerns to be raised, independently investigated, and for appropriate follow-up action to be taken;
(c)
reviewing external and internal audit reports to ensure that where deficiencies in internal controls have been
identified, appropriate and prompt remedial action is taken by the management;
(d)
reviewing internal audit reports at least twice a year to ascertain that the guidelines and procedures established to
monitor related party transactions have been complied with;
(e)
reviewing, on an annual basis, the internal audit function to ensure that is adequately resourced, is independent
of the activities it audits, has appropriate standing within the Manager, is staffed with persons with the relevant
qualifications and experience and has unfettered access to all documents, records, properties and personnel,
including access to the AC;
CORPORATE
GOVERNANCE
ParkwayLife REIT
Annual Report 2015
58
