TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
28
Corporate Governance Report
12.8 Disclose the details
of the ARC’s activities and
measures taken to keep
abreast of changes to
accounting standards and
issues
The ARC is guided by the terms of reference which stipulate its principal functions.
The Company will arrange to send the ARC members to seminars on updates of Financial
Reporting Standards (FRS), if required. The external auditors provides regular updates and
briefings to the ARC on changes or amendments to accounting standards to enable the
members of the ARC to keep abreast of such changes and its corresponding impact on the
financial statements, if any.
In review of the financial statements for FY16, the ARC is of the view that the financial
statements are fairly presented in conformity with the relevant Singapore FRS in all material
aspects.
Principle 13: Internal Audit
The Company should establish an effective internal audit function that is adequately resourced and independent of the activities
it audits.
13.1, 13.2 and 13.3 IA
function to report to ARC
chairman, and to CEO
administratively; ARC
to ensure IA function is
adequately resourced; IA
function is staffed with
persons with relevant
qualifications and
experience
The Company has an in-house internal audit team that primarily reports to the Chairman of
the ARC, and also to the Chief Financial Officer on administrative matters. The ARC reviews
and approves the hiring of internal auditors (“
IA
”), internal audit plans, resources and reports,
and the internal audit fees. The IA has unfettered access to all the Company’s documents,
records, properties and personnel, including access to the ARC.
Biennially, the Group will outsource its internal audit function to an independent auditing firm
for independent review on internal controls and practices. The engagement of the auditing
firm is subject to ARC approval.
The ARC has full access to and the cooperation of the Management and internal auditors,
and ensures that the internal audit function is adequately resourced, staffed with persons
with the relevant qualifications and experience, and has appropriate standing within the
Company to perform its function.
13.4 and 13.5 Internal
auditor should carry out
its function according to
standards set by nationally
or internationally recognized
professional bodies; ARC
should, at least annually,
review the adequacy and
effectiveness of the internal
audit function
An annual review of the in-house and outsourced internal audit functions is carried out. The
ARC ensures, amongst others, the adequacy and effectiveness of the internal audit functions
by examining the fees and independence of the IA, the scope of work, the quality of the
reports, resources as mentioned earlier and that the internal auditors carried out its function
according to standards set by internationally recognized professional bodies.
