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COSCO Corporation (Singapore) Limited
The AC and the Board of Directors, with the assistance of internal and external auditors, reviews the effectiveness
of the key internal controls, including financial, operational, compliance, information technology controls and risk
management systems on an on-going basis. There are formal procedures in place for both the internal and external
auditors to report independently their findings and recommendations to the AC.
The AC has full access to, and cooperation from the Management including internal and external auditors, and has
full discretion to invite any Director or executive officer to attend its meetings. The AC has also expressed power to
investigate any matter brought to its attention, within its terms of reference, with the power to retain professional advice
at the Company’s expense.
The Group recognises the importance of the internal audit function which, being independent of Management is one
of the principal means by which the AC is able to carry out its responsibilities effectively. The Company has appointed
Deloitte & Touche Enterprise Risk Services Pte. Ltd. as the outsourced internal auditors of the Group.
The internal auditors plan their internal audit schedules in consultation with the Management and submit their
respective plans to the AC for approval. The Internal Auditors report directly to the AC and the AC will then escalate the
IA report to the Board as part of their oversight role.
The AC conducts regular meetings scheduled on a quarterly basis. Apart from the quarterly meetings, the AC meets
with the external and internal auditors, without the presence of the management at least once a year. Ad-hoc meetings
may be carried out from time to time, as circumstances require. The AC held five (5) meetings during the financial year.
After reviewing the non-audit services provided by the external auditors, PricewaterhouseCoopers LLP, to the Group,
the AC is satisfied with the independence and objectivity of the external auditors and recommends to the Board of
Directors, the nomination of the external auditors for re-appointment.
The fee paid to PricewaterhouseCoopers LLP for audit and non-audit services for the financial year ended 31
December 2014 is S$1,350,000 and S$49,000 respectively.
The Company complies with Rules 712 and 715 of the Listing Manual of the Singapore Exchange Securities Trading
Limited in relation to appointing appropriate auditing firm based in Singapore to audit its accounts, and its Singapore-
incorporated subsidiaries and significant associated companies.
Whistle-blowing Policy
The Company has in place a whistle-blowing policy and arrangements by which staff may, in confidence, raise
concerns about possible corporate improprieties in matters of financial reporting or other matters. To ensure
independent investigation of such matters and for appropriate follow-up action, all whistle-blowing reports are to be
sent to the internal audit function. The AC, President and Chief Financial Officer of the Company will be informed
immediately of all whistle-blowing reports received.
Details of the whistle-blowing policy and arrangements are given to all staff for their easy reference. New staff is briefed
on these during the orientation programme.
INTERNAL AUDIT
Principle 13
The AC reviews the adequacy and effectiveness of the internal audit function annually. The internal audit function’s
primary line of reporting is to the Chairman of the AC. Internal Audit is an independent function within the Company.
Internal Auditors report directly to the AC and administratively to the President. The Company has appointed Deloitte
& Touche Enterprise Risk Services Pte. Ltd. as the internal auditors of the Group. The internal auditors have unfettered
access to all the Company’s documents, records, properties and personnel, including access to the AC.
The AC is satisfied with the independence and objectivity of the outsourced Internal Auditors and believes that they
have appropriate standing to perform their functions effectively.
Corporate
Governance
Corporate Governance and Transparency
