INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
57.
At each quarterly AC & RMC meeting, the IAD and ERM team will present the key findings together with the Management’s
recommended remedial actions for discussion and follow-up actions.
With the Internal Audit (“
IA
”) and ERM framework and processes firmly in place as an effective tool to identify, monitor,
manage and report material risks affecting the Group, the AC & RMC is satisfied that the Group’s internal controls are in order.
The Board has received assurance from the CEO and CFO that, to their best knowledge and belief, the financial records were
properly maintained, the financial statements presented a true and fair view of the Group’s operations, and effective risk
management and internal control systems were put in place.
Based on the Group’s established framework and the reviews conducted by the Management, IAD and ERM team, the Board
with the AC & RMC’s concurrence confirms that the Group’s internal controls are adequate and effective in addressing the
financial, operational, compliance and information technology control risks, as well as risk management system.
However, as no internal control system or ERM framework can provide absolute assurance against material, judgement or
human errors, frauds and other irregularities, the Board deems that the Group’s internal control system and ERM framework
provide reasonable assurance against material financial misstatement or loss and is sufficient in safeguarding the Company’s
assets and shareholders’ value.
AUDIT AND RISK MANAGEMENT COMMITTEE [PRINCIPLE 12]
The AC & RMC comprises three Independent Directors, including the Chairman, Mr Goh Kian Chee, and members, Messrs Lim
Hock San and Hendra Susanto. The AC & RMC possesses expertise in financial management and is fully qualified to discharge
its duties and responsibilities as follows:
•
review the audit plan, the evaluation of the internal accounting controls, audit report, Management letter and
Management’s response with the external auditors;
•
review the quarterly, half-yearly and annual financial statements before submission to the Board for approval, focusing
on changes in accounting policies and practices, major risk areas, significant adjustments resulting from the audit,
going concern statement, compliance with applicable accounting standards, and stock exchange, statutory and
regulatory requirements;
•
review the effectiveness and adequacy of the Group’s internal controls, including financial, operational, and compliance
controls and procedures, risk management policies and systems, and co-ordination between external auditors and
Management;
•
review the level of assistance provided by the Management to the auditors, the resolution of problems and concerns
arising from the interim and final audits, and any issues surfaced by the auditors (in the absence of Management where
necessary);
•
review and discuss with the external auditors any suspected fraud, irregularity, and infringement of 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;
•
consider the appointment and re-appointment of the external auditors, the audit fee, and matters relating to the
resignation or dismissal of auditors;
•
review Interested Person Transactions;
•
review the whistle-blowing arrangements instituted by the Group where staff can raise concerns and report possible
improprieties in financial or other matters in confidence;
•
review the Group’s ERM reports;
•
undertake reviews and projects as may be requested by the Board and report to the Board its findings on matters
requiring the attention of the AC & RMC; and
•
undertake functions and duties as may be required by the statute or the Listing Manual.
External Audit
The AC & RMC reviews the scope, results and objectivity of the audit work carried out by the external auditors annually.
Following the review of services performed during the financial year by the external auditors, Ernst & Young LLP, the AC & RMC
was satisfied with the impartiality of the independent external auditors. In accordance to Rule 1207(6)(a) of the Listing Manual,
the audit fees and non-audit fees paid to the external auditors for their services in the financial year ended 31 December 2015
are disclosed on page 95 of this Annual Report.
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