Baker Technology Limited
operations.TheBoardnotes that no systemof internal controls is capableof providing absolute
assurance against the occurrence ofmaterial errors, poor judgment in decision-making, human
error, losses, fraud or other irregularities.
Principle 12:AuditCommittee
TheAC comprisesMrAngMiahKhiang,MrWongMengYeng andMsHanSahHeokVicky, all of
whomareIndependentDirectors.TheChairmanof theAC isMrAngMiahKhiang.Allmembersof the
AC are appropriatelyqualified, with at least twomembers having the requisitefinancialmanagement
expertiseandexperience.
TheACcarriedout theirduties inaccordancewith the termsof referencewhich include the following:
(i) review the scope and results of the external audit work, cost effectiveness of the audit, and the
independenceandobjectivityof theexternal auditors;
(ii) review theGroup’s quarterly and full year financial statements, the accountingprinciples adopted
and theexternal auditor’s report on thefinancial statementsof theGroupbefore submission to the
Board for approval;
(iii) review, with the internal auditors, the scope of the internal audit procedures and the results of the
internalaudit,monitoringtheresponsestotheirfindingstoensurethatappropriatefollow-upmeasures
are taken;
(iv) review and report to theBoard at least annuallyon the adequacy and effectiveness of theGroup’s
internal controls, includingfinancial, operational, complianceand information technologycontrols
and riskmanagement systems, relyingon reviewscarriedout by the internal auditors;
(v) recommend to theBoardon theproposals to the shareholderson theappointment, re-appointment
and removal of theexternal auditors; and
(vi) review interestedperson transactions inaccordancewith the requirementsof theListingManualof
theSGX-ST.
TheACmetfivetimesduringtheyearunderreview.DetailsofACmembersandtheirattendanceatmeetings
areprovidedonpage53.Theauditors(ifrequired),theACandCompanySecretaryareinvitedtothesemeetings.
TheAChas the authority to investigate any activity it deems appropriatewithin its terms of reference
and is authorised to obtain independent professional advice. It has full access to and cooperation of
theManagement and reasonable resources to enable it to discharge its duties properly. It reviews the
assistancegivenby theCompany’sofficers to theexternaland internalauditors.TheAChasunrestricted
access to the external and internal auditors. TheACmeetswith theCompany’s external and internal
auditorswithout the presence ofManagement at least once a year to review anymatter thatmight be
raisedprivately. Italsohasfulldiscretion to inviteanyDirector,keymanagementpersonneloranyother
person toattend itsmeetings.
The aggregate audit and non-audit fees payable to the external auditors, Ernst &YoungLLP (“EY”)
forFY2016were$198,000and$11,000 respectively.TheAC, having reviewed the scopeandvalueof
non-audit servicesprovided to theGroupbyEY, is satisfied that thenatureandextent of such services
wouldnot prejudiceandeffect their independenceandobjectivity.
In reviewing thenominationofEY for re-appointment as theCompany’s auditor for thefinancial year
ending31December2017, theAChadconsideredtheadequacyandappropriate resourcesandexperience
of the firm and the assigned audit engagement partner, other audit engagements and the number and
experienceof the supervisoryandprofessional staff assigned to theGroup’saudit.
-
63
-
Sustainability
