Principle
The Board should set up an Audit Committee (“AC”) with its authority and duties clearly stated in written terms. The committee helps to manage risk, ensure internal controls are competent and there is integrity in financial reporting, which helps reduce the chances of fraud occurring.
Guidelines – Similarities
1. AC to review the independence of external auditors annually to ensure that opinions of the Company made by external auditors are not influenced by any interest they have with the Company, reducing the chances of corporate abuse.
2. AC members are expected have a financial background and relevant experience in that field. This ensures that the members can make proper business…show more content… The independence of AC members and external auditors and policies to raise the concern of any misconduct of employees are to be reviewed by the AC mentioned in the Code help reduces the chances corporate abuse in the company. Also, the disclosure of AC activities also reduces the chances fraud and mismanagement occurring.
ComfortDelGro’s Practices
1. The Audit and Risk Committee (“ARC”) consist of 4 NEDs that are independent.
2. The ARC members have current and related financial management expertise.
3. ComfortDelGro discloses their whistle-blowing policy in their annual report. (Refer to Appendix 3.1.2)
4. The roles of the ARC are as disclosed. (Refer to Appendix 3.1.3)
5. The ARC reviews the independence of external auditors by ensuring the partner in-charge changes every 5 years.
ComfortDelGro complies with the Code as shown by their practices above.
Improvements
There are no improvements to be made for ComfortDelGro’s Code of Governance as some regulations stated are more stringent than those in the Code such as members of the ARC are independent and are NEDs while the Code mentioned that majority and a minimum of 3 members must be
