FRONTLINE COVER FA 070606 CR2.indd

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frontline technologies corporation ltd
annual report 2006
> corporate governance report (cont’d)
7. Principle XI: Audit Committee (cont’d)
Principle XII: Internal Controls (cont’d)
Principle XIII: Internal Audit (cont’d)
c) reviewing with the internal auditors, the scope and results of internal audit procedures and their evaluation of the
internal control system;
d) evaluating the objectivity and independence of the external auditors annually and nominating external auditors
for appointment or re-appointment.
In performing its functions, the AC specifically empowered and authorised to investigate any matter within its terms of
reference and has full access to and co-operation by management and full discretion to invite any director or executive
officer to attend its meetings, and reasonable resources to enable it to discharge its functions properly.
The AC meets with the external auditors without the presence of the Frontline management at least once a year to
ensure that there are no unresolved areas of concern.
Save for the fees paid for tax services rendered, there are no other non-audit fees payable to Frontline’s external
auditors . The AC has also reviewed all non-audit services provided by the external auditors and it is of the view that
such services would not affect the independence of the external auditors.
The AC has reviewed the Company’s risk assessment and based on the external auditor’s reports, is satisfied that
there are adequate internal controls in the Company. The AC expects the risk assessment process to be a continuing
process as it recognises the importance of sound internal control and risk management practices to good corporate
governance.
8. Principle X: Accountability and Audit
Principle XIV: Communication with Shareholders
Principle XV: Greater Shareholder Participation
The Company and the Group works towards timeliness and transparency in its disclosures to the shareholders and
the public. In addition to the regular dissemination of information through SGXNET and the Frontline website , the
Company also responds to enquiries from investors, analysts, fund managers and the mass media. The Company does
not practice selective disclosure as all price-sensitive information is released through SGXNet.
All shareholders of the Company receive a copy of the annual report and notice of AGM. The notice of AGM is also
advertised in the newspapers. At the AGM, shareholders are given the opportunity to air their views and ask directors
questions regarding the Company. To facilitate voting by shareholders, the Company’s articles allow shareholders
to vote by appointing one (1) or more proxies. The Board of directors, management, as well as the external auditors
attend the Company’s AGM to address any questions that shareholders may have.
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Messrs Ernst & Young, who were succeeded by Messrs Baker Tilly TFWLCL on 17 February 2006.