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actions in managing the key risks,
as well as action plans to address
the gaps are considered and
documented.
The ERM Framework is
complemented by the Group’s
system of internal controls,
which includes the Code of
Conduct, documented policies
and procedures, proper
segregation of duties, approval
procedures and authorities as
well as checks-and-balances
built into the business processes.
During the year under review, the
Board has received assurances
from the CEO and the CFO
that the financial records have
been properly maintained and
the financial statements give a
true and fair view of the Group’s
operations and finances, and
the Group’s risk management
and internal control systems
are adequate and effective in
addressing material risks in the
Group in its current business
environment.
Based on the ERM Framework
established, reviews carried out
by the AC, the work performed
by the internal and external
auditors and assurance from the
Management, the Board, with
the concurrence of the AC, is
of the opinion that the Group’s
risk management systems and
internal controls were adequate
and effective as at 31 December
2018 to address financial,
operational, compliance and
information technology risks
within the current scope of the
Group’s business operations.
The Board notes that no system
of internal controls is capable
of providing absolute assurance
against the occurrence of
material errors, poor judgment
in decision-making, human
error, losses, fraud or other
irregularities.
Principle 12:
Audit Committee
The AC comprises Mr Ang Miah
Khiang, Mr Wong Meng Yeng
and Ms Han Sah Heok Vicky,
all of whom are Independent
Directors. The Chairman of
the AC is Mr Ang Miah Khiang.
All members of the AC are
appropriately qualified, with at
least two members having the
requisite financial management
expertise and experience.
The AC does not have any
member who is a former partner
or Director of the Company’s
existing audit firm.
The AC carried out their duties
in accordance with the terms
of reference which include the
following:
(i) review the quarterly, half
yearly and full year financial
statements of the Group
before submission to the
Board for approval,
(ii) review the significant
financial reporting issues
and judgments, changes
in accounting policies and
standards and major risk
areas so as to ensure the
integrity of the financial
statements of the Company
and any announcements
relating to the Company’s
financial performance;
(iii) review the scope and results
of the external audit work,
cost effectiveness of the
audit, and the independence
and objectivity of the
external auditors;
(iv) review, with the internal
auditors, the scope of the
internal audit procedures
and the results of the
internal audit, monitoring
the responses to their
findings to ensure that
appropriate follow-up
measures are taken;
(v) review the adequacy and
effectiveness of the Group’s
internal controls, including
financial, operational,
compliance and information
technology controls and
risk management systems,
relying on reviews carried
out by the internal auditors;
(vi) recommend to the Board
on the appointment and re-
appointment of the external
auditors and matters
relating to the resignation
or dismissal of the auditors;
and
(vii) review interested person
transactions (if any) falling
within the scope of the
Listing Manual of the
SGX-ST.
The AC met five times during the
year under review. Details of AC
members and their attendance
at meetings are provided
on page 42. The auditors (if
required), the CEO, CFO and
Company Secretary were also in
attendance.
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B A K E R T E C H N O L O G Y
L I M I T E D