notice of annual general meeting - HI-P Singapore Pte Ltd

corporate governance report (cont’d)
Audit Committee (“AC”)
PRINCIPLE 11: AUDIT COMMITTEE
The AC comprises Mr Wong Meng Meng, Dr Tan Khee Giap and Mr Yeo Tiong Eng. The Chairman of the AC is Mr Wong Meng
Meng.
The Board has approved the written terms of reference of the AC. Its functions are as follows:-
(a) reviewing and evaluating financial and operating results and accounting policies;
(b) reviewing audit plan of external auditors, their evaluation of the system of internal accounting controls and their audit
report;
(c) reviewing the Group’s financial results and the announcements before submission to the Board for approval;
(d) reviewing the assistance given by the management to external auditors;
(e) considering the appointment/ re-appointment of external auditors;
(f) reviewing interested person transactions; and
(g) other functions as required by law or the Code.
The AC meets regularly and also holds informal meetings and discussions with the management from time to time. The AC has full
discretion to invite any Director or executive officer to attend its meetings.
The AC has been given full access to and is provided with the cooperation of the Company’s management. In addition, the AC has
independent access to the external auditors. The AC meets with the external auditors without the presence of management to
review matters that might be raised privately. The AC has reasonable resources to enable it to discharge its functions properly.
The AC has reviewed the volume of non-audit services to the Group by the external auditors, and being satisfied that the nature
and extent of such services will not prejudice the independence and objectivity of the external auditors, is pleased to recommend
their re-appointment.
PRINCIPLE 12: INTERNAL CONTROLS
The Group’s internal controls and systems are designed to provide reasonable, but not absolute assurance to the integrity and
reliability of the financial information and to safeguard and maintain the accountability of the assets.
The Board believes that, in the absence of any evidence to the contrary, the system of internal controls maintained by the Group’s
management and that was in place throughout the year and up to the date of this Report, is adequate to meet the needs of the
Group in its current business environment.
PRINCIPLE 13: INTERNAL AUDIT
The internal audit function has been out sourced to Messrs PricewaterhouseCoopers (“internal audit managers”). The internal audit
function reports directly to the AC on audit matters and to the CEO on administrative matters.
The objective of the internal audit function is to provide independent and reasonable assurance to the AC and management that
the Group’s risk management, controls and governance processes are adequate and effective.
The AC has reviewed with the internal audit managers their audit plans, their evaluation of the system of internal controls, their
audit findings and management’s responses to those findings; the effectiveness of material internal controls, including financial,
operational and compliance controls and overall risk management of the Company and the Group. The AC is satisfied that the
internal audit is adequately resourced and has appropriate standing within the Group.
24. Hi-P International Limited
Annual Report 2005
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