32
TEHO INTERNATIONAL INC LTD.
Annual Report 2015
(b) to review with the internal auditors the internal audit plan and their evaluation of the
adequacy of the internal controls and accounting system before submission of the results
of such review to the Board for approval prior to the incorporation of such results in the
annual report;
(c) to review the financial statements before submission to the Board for approval, focusing
in particular, on changes in accounting policies and practices, major risk areas, significant
adjustments resulting from the audit, the going concern statement, compliance with
accounting standards as well as compliance with any stock exchange and statutory/
regulatory requirements;
(d) to review the internal controls and procedures and ensure co-ordination between the
external auditors and the management, reviewing the assistance given by the management
to the auditors, and discuss problems and concerns, if any, arising from the interim and
final audits, and any matters which the auditors may wish to discuss (in the absence of the
management where necessary);
(e) to review and discuss with external and internal auditors (if any), any suspected fraud or
irregularity, or suspected infringement of any relevant laws, rules or regulations, which has
or is likely to have a material impact on the Group’s operating results or financial position,
and the management’s response;
(f) to review the Group’s key financial risk areas (including but not limited to, the Group’s
cash management policies and cash position, collection of debts, hedging policies and
transactions, speculative trading policies and positions and off-balance sheet items);
(g) to consider the appointment or re-appointment of the external auditors and matters relating
to resignation or dismissal of the auditors;
(h) to review transactions falling within the scope of Chapter 9 of the Catalist Rules;
(i) to review any potential conflicts of interest;
(j) to undertake such other reviews and projects as may be requested by the Board and report
to the Board its findings from time to time on matters arising and requiring the attention of
the AC; and
(k) generally to undertake such other functions and duties as may be required by statute or the
Catalist Rules, and by such amendments made thereto from time to time.
Apart from the above functions, the AC is given the task to commission and review the findings
of investigations into matters where there is suspected fraud or irregularity, or failure of internal
controls or infringement of any Singapore law, rule or regulation, which has or is likely to have a
material impact on the Company’s operating results or financial position.
The AC had met with the External Auditors, without the presence of management to review the
adequacy of audit arrangements, with emphasis on the scope and quality of their audit, and the
independence, objectivity and observations of the External Auditors.
The AC confirms that it has undertaken a review of all non-audit services provided by the External
Auditors and that such non-audit services would not in the AC’s opinion, affect the independence
of the External Auditors. In the AC’s opinion, KPMG LLP is suitable for re-appointment and it has
accordingly recommended to the Board that KPMG LLP be nominated for re-appointment as
auditors of the Company at the forthcoming AGM. KPMG LLP is registered with the Accounting
and Corporate Regulatory Authority of Singapore.
The Company has complied with Rules 712 and 715 of the Catalist Rules in appointing the audit
firms for the Group.
It is the Company‘s practice for the external auditors to present to the AC its audit plan and
with updates relating to any change in accounting standards impacting the financial statements.
During FY2015, the External Auditors briefed the AC on the changes in accounting standards
during the AC meeting and confirmed that the changes did not have any material impact on the
Group’s financial statements.
REPORT OF
CORPORATE GOVERNANCE
