CORPORATE GOVERNANCE REPORT
(i)
to review the procedures by which employees of the Group may, in confidence, report to the Chairman of
the AC, possible improprieties in matters of financial reporting or other matters and ensure that there are
arrangements in place for independent investigation and follow-up actions thereto;
(j)
to undertake such other reviews and projects as may be requested by the Board, and report to the Board its
findings from time to time on matters arising and requiring the attention of the AC; and
(k)
to undertake generally such other functions and duties as may be required by law or the Catalist Rules, and by
such amendments made thereto from time to time.
The AC has explicit authority to investigate any matter within its terms of reference, with full access to and the
co-operation of the Management.
The AC hadmet with the internal and external auditors, without the presence of the Management to review the adequacy
of audit arrangements, with emphasis on the scope and quality of their audit, and the independence, objectivity and
observations of the internal and external auditors.
For the FY2016, the aggregate amount of fees paid or payable to the external auditor for the audit services is reflected
in Note 6 to the audited financial statements. There is no non-audit services provided by the external auditor as of
30 June 2016. In the AC’s opinion, Baker Tilly TFW LLP is suitable for re-appointment and the AC has accordingly
recommended to the Board that Baker Tilly TFW LLP be nominated for re-appointment as the external auditor of the
Company at the forthcoming AGM.
The Company has complied with Rules 712 and 715 of the Catalist Rules in relation to its external auditor.
The Company has in place a whistle-blowing policy which provides an accessible channel for employees of the Group
to raise concerns to the AC about possible corporate improprieties or possible fraudulent activities in matters of
financial reporting or other matters.
It is the Company‘s practice for the external auditor to present to the AC its audit plan and with updates relating to any
changes in accounting standards impacting the financial statements before an audit commences. During FY2016, the
changes in accounting standards has no material impact on the Group’s financial statements.
Internal Audit
Principle 13:
The company should establish an effective internal audit function that is adequately resourced and
independent of the activities it audits.
The size of the operations of the Group does not warrant the Group having an in-house internal audit function at this
juncture. The Company has therefore appointed Nexia TS Risk Advisory Pte Ltd to undertake the functions of an internal
auditor for the Group. The internal auditor reports directly to the AC and administratively to the Executive Directors.
In view of the above, the AC is satisfied that the current arrangement to outsource the internal audit to Nexia TS Risk
Advisory Pte Ltd will provide an independent internal audit for the Group’s operations.
50
ISOTEAM LTD.
ANNUAL REPORT 2016
