One - Lippo Malls Indonesia Retail Trust - Investor Relations

43Corporate Governance (Cont’d)AUDIT COMMITTEEThe Audit Committee is appointed by the Board from among the Directors and is composed of three members, all of whom (including theChairman of the Audit Committee) are Independent Directors.Presently, the Audit Committee consists of the following:Mr Lim Ho Seng (Chairman)Mr Tan Bar TienMr Lok Vi Ming(Non-executive and Independent)(Non-executive and lndependent)(Non-executive and lndependent)The role of the Audit Committee is to monitor and evaluate the effectiveness of the Manager’s internal controls. The Audit Committee alsoreviews the quality and reliability of information prepared for inclusion in fi nancial reports, and is responsible for the nominations of externalauditors and reviewing the adequacy of external audits in respect of cost, scope and performance.The Audit Committee’s responsibilities also include:• monitoring the procedures established to regulate Related Party Transactions, including ensuring compliance with the provisionsof the Listing Manual relating to “interested person transactions” (as defi ned therein) and the provisions of the Property FundsGuidelines relating to “interested party transactions” (as defi ned therein) (both such types of transactions constituting “RelatedParty Transactions”);• reviewing external audit reports to ensure that where defi ciencies in internal controls have been identifi ed, appropriate and promptremedial action is taken by management;• reviewing internal audit reports at least twice a year to ascertain that the guidelines and procedures established to monitor RelatedParty Transactions have been complied with;• ensuring that the internal audit function is adequately resourced and has appropriate standing with LMIR trust;• monitoring the procedures in place to ensure compliance with applicable legislation, the Listing Manual and the PropertyFunds Guidelines;• nominating external auditors of the Trust;• reviewing the nature and extent of non-audit services performed by the external auditors;• reviewing, on an annual basis, the independence and objectivity of the external auditors;• meeting with external and internal auditors without presence of the Executive Offi cers at least on an annual basis;• examining the effectiveness of fi nancial, operating and compliance controls;• reviewing the fi nancial statements and the internal audit report;• investigating any matters within the Audit Committee’s terms of reference, whenever it deems necessary; and• reporting to the Board on material matters, fi ndings and recommendations.The Audit Committee has full access to and co-operation from management and enjoys full discretion to invite any director and executiveoffi cer of the Manager to attend its meetings. The Audit Committee has full access to reasonable resources to enable it to discharge itsfunctions properly.