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EC World Real Estate Investment Trust ANNUAL REPORT 2016
Audit Committee
Principle 12:
Establishment of Audit and Risk Committee with written terms of reference
The ARC comprises three IDs namely:
Mr Wong See Hong
Chairman
Mr Chia Yew Boon
Member
Mr Li Guosheng
Member
The members bring with them invaluable and relevant managerial and professional expertise in accounting and related
financial management domains.
The ARC does not have any member who is a former partner or Director of ECW’s existing audit firm.
The ARC has explicit authority to investigate any matter within its terms of reference. Management is required to provide
the full co-operation in providing information and resources, and in implementing or carrying out all requests made
by the ARC. The ARC has direct access to the internal and external auditors and full discretion to invite any Director or
executive officer to attend its meetings. Similarly, both the internal and external auditors are given unrestricted access
to the ARC.
The ARC is guided by its terms of reference, which defines its duties and scope of authority. In particular, the duties of
the ARC include the following which the ARC had carried out during the year:
(a) reviews the annual audit plan, including the nature and scope of the internal and external audits before the
commencement of the audits;
(b) reviews the significant financial reporting issues and judgements so as to ensure the integrity of the financial
statements of ECW Group and any announcements relating to ECW Group’s financial performance;
(c) reviews and reports to the Board at least annually the adequacy and effectiveness of the Manager’s internal
controls, including financial, operational, compliance and information technology controls, and risk management
systems;
(d) reviews the adequacy and effectiveness of the Manager’s internal audit and compliance functions;
(e) reviews the scope and results of the external audit and independence and objectivity of the external auditors;
(f)
makes recommendations to the Board on the proposals to Unitholders on the appointment, reappointment and
removal of the external auditors, and approving the remuneration of the external auditors;
(g) reviews and approves processes to regulate transactions involving an Interested Person (as defined in Chapter
9 of the Listing Manual) and/or Interested Party (as defined in the Property Funds Appendix) (each, an Interested
Person) and ECW and/or its subsidiaries (Interested Person Transactions) to ensure compliance with the applicable
regulations, in particular, the requirements that the transactions are on normal commercial terms and are not
prejudicial to the interests of ECW and its minority Unitholders and, in respect of any property management
agreement which is an Interested Person or Interested Party transaction, the requirement that reviews of the
Property Manager’s compliance with the terms of the property management agreement and any remedial actions
taken, where necessary, are carried out at intervals commensurate with the tenure of such agreement; and