TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
25
Corporate Governance Report
A risk monitoring, review and reporting framework has been established to deploy the
ongoing monitoring tools and processes of the Group which includes monitoring of risk score
changes, ongoing assessment of risk treatment action plans and quarterly ERM reporting to
the ARC. Management reviews all significant control policies and procedures and highlights
all significant matters to the ARC and the Board.
The Group’s risk factors and management are set out in the notes to the financial statements
in this Annual Report.
The Group has an in-house internal audit division. Biennially, the Group will engage an
independent internal audit firm to independently review the Group’s internal controls and
practices. During FY16, the Company has appointed Foo Kon Tan Advisory Services Pte Ltd
to carry out an independent internal audit review on the Group’s key operational processes
in Singapore based on the ARC approved internal audit plans.
The Company’s external auditors, Ernst & Young LLP, have also in the course of their annual
audit carried out a review of the effectiveness of the Group’s material internal controls over
financial reporting as laid out in their audit plans. Any material non-compliance and internal
control weakness noted during the audits and auditors’ recommendations are reported to
the ARC. The Company’s in-house internal auditor follows up on the recommendations
and monitors the timely and proper implementation of required corrective, preventive and
improvement measures so as to strengthen the Group’s internal controls and practices.
The auditors have also evaluated the effectiveness of the financial, operational, compliance
and information technology internal controls implemented to manage the identified risks
based on the results of the ERM process executed.
11.3 Board’s comment
on the adequacy of the
internal controls, including
financial, operational,
compliance and information
technology controls and risk
management systems in the
Company’s annual report
During the financial year, the ARC has reviewed the internal and external audit reports.
Management has also taken appropriate and timely countermeasures to remedy the internal
control weaknesses identified and sought ways to continuously improve the Group’s internal
control systems.
Based on the reports submitted by the auditors, and the various management controls/
improvements put in place by Management, the Board with the concurrence of the ARC, is
of the opinion that the Group’s system of internal controls (addressing financial, operational,
compliance and information technology controls, and risk management systems) maintained
by the Management during FY16 are adequate and effective. While acknowledging their
responsibility for the system of internal controls, the Board is aware that such a system is
designed to minimise, rather than eliminate all risks, and therefore cannot provide an absolute
assurance in this regard, or absolute assurance against the occurrence of occasional errors,
poor judgment in decision making, fraud and irregularities.
The Board has also received assurance from the Executive Chairman and the Chief
Financial Officer that the financial records have been properly maintained and the financial
statements give a true and fair view of the Group’s operations and finances; and regarding
the effectiveness of the Company’s risk management and internal control systems.
