(f)
monitoring the procedures in place to ensure compliance with applicable legislation, the Listing Manual and the CIS
Code including the Property Funds Appendix;
(g)
reviewing the nature and extent of non-audit services performed by external auditors;
(h)
reviewing the scope and results of the external audit and the independence and objectivity of the external auditors;
(i)
meeting with external and internal auditors, without the presence of the executive director and key management
personnel at least annually;
(j)
examining the effectiveness of financial, operational, compliance and information technology controls at least
annually;
(k)
reviewing the significant financial reporting issues and judgements so as to ensure the integrity of the financial
statements of PLife REIT and any formal announcements relating to PLife REIT’s financial performance;
(l)
investigating any matters within the AC’s terms of reference, whenever it deems necessary;
(m)
reporting to the Board on material matters, findings and recommendations; and
(n)
making recommendations to the Board on the appointment, re-appointment and removal of the external auditors.
The AC has authority to investigate any matter within its terms of reference. It also has full access to and co-operation by
management and full discretion to invite any director or executive officer to attend its meetings.
The AC has conducted a review of all non-audit services provided by the external auditors and is satisfied that the nature
and extent of such services will not prejudice the independence and objectivity of the external auditors. For FY2015, the
aggregate amount of audit fees paid and payable by PLife REIT to the external auditors was S$433,000, comprising non-
audit service fees of S$176,000 and audit service fees of S$257,000.
The AC meets with the external auditors, without the presence of management, at least once a year.
The AC is briefed regularly on the impact of the new accounting standards on PLife REIT’s financial statements by the
external auditors.
None of the members of the AC are former partners or directors of the Manager’s and PLife REIT’s external auditors.
INTERNAL AUDIT
Principle 13:
The company should establish an effective internal audit function that is adequately resourced and
independent of the activities it audits.
The Manager has put in place a system of internal controls of procedures, including financial, operational, compliance and
information technology controls, and risk management systems to safeguard PLife REIT’s assets, Unitholders’ interests
as well as to manage risk.
The internal audit function of the Manager is outsourced to an independent assurance service provider and the AC
reviews the adequacy and effectiveness of the internal auditor at least once a year. The AC is satisfied that the internal
auditor has the relevant qualifications and experience and has met the standards established by internationally recognised
professional bodies including the Standards for the Professional Practice of Internal Auditing set by The Institute of
Internal Auditors. The internal auditor reports directly to the AC on audit matters and the AC approves the hiring, removal,
evaluation and fees of the internal auditor. The AC also reviews and approves the annual internal audit plan and reviews
the internal audit reports and activities. The AC meets with the internal auditor, without the presence of management, at
least once a year. The AC is of the view that the internal auditor has adequate resources to perform its functions and has
to the best of its ability, maintained its independence from the activities that it audits.
ParkwayLife REIT
Annual Report 2015
59
