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TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
CORPORATE
GOVERNANCE
In 2015, our AC held four meetings and meets with the external and internal auditors without the presence of Management, at least
once during the year, to discuss matters it believes should be raised privately.
Our AC reviews the nature and extent of non-audit services provided by the external auditors during the year to assess the external
auditors’ independence. For details of fees payable to the auditors in respect of audit and non-audit services, please refer to Note 25
of the financial statements on page 103 of this Annual Report. Having been satisfied that the independence of the external auditors
is not impaired by their provision of non-audit services, and that Rules 712 and 715 of the Listing Manual have been complied with,
the AC has recommended to the Board that KPMG LLP be nominated for re-appointment as the external auditors at the next AGM.
In line with our commitment to a high standard of internal controls and its zero tolerance approach to fraud, we have put in place
a whistle blower policy (the “
Policy
”) providing employees a direct channel to the AC, for reporting suspected fraud and possible
impropriety in financial reporting, unethical conduct, dishonest practices or other similar matters. This Policy aims at protecting
employees against discrimination or retaliation as a result of their reporting information regarding, or their participation in, inquiries,
investigations or proceedings involving TeleChoice or its agents. With such a policy in place, we are able to take swift action against
any fraudulent conduct and minimise any financial losses arising from such conduct. The Policy is available on our intranet and is
accessible by all employees.
Management monitors changes to accounting standards and issues which have a direct impact on financial statements closely. Updates
and briefings on regulatory requirements are conducted either during AC sessions or by circulation of papers.
Principle 13: Internal Audit
The Group has established an in-house internal audit function. The internal audit is an independent function within the Group. The Head
of Internal Audit reports functionally to the AC Chairman and administratively to the President and the CFO. The AC approves the
hiring, removal, evaluation and compensation of the Head of Internal Audit. The scope of authority and responsibility of the internal
audit function is defined in the Group Internal Audit Charter, which has been approved by the AC.
The professional competence of the internal auditors is maintained or upgraded through training programmes, conferences and seminars
that provide updates on auditing techniques, regulations, financial products and services. The internal audit function is staffed with
suitably qualified experienced professionals who are at the level of assistant manager and above. The AC is satisfied that the internal
audit function has adequate resources to perform its functions effectively.
As a member of the Institute of Internal Auditors Singapore (IIA), the internal audit function adopts the International Standards for
the Professional Practice of Internal Auditing (the IIA Standards) issued by IIA. The internal audit function has completed its external
Quality Assurance Review in 2013 and continues to meet the IIA Standards in all key aspects.
The primary role of internal audit function is to help to evaluate the adequacy and effectiveness of the Group’s controls and compliance
processes. The Group’s internal audit approach is aligned with the Group’s Risk Management Framework by focusing on key financial
and compliance risks. The annual internal audit plan is established in consultation with, but independent of Management. The annual
internal audit plan is then reviewed and approved by the AC. All internal audit findings, recommendations and status of remediation,
are circulated to the AC, the President and relevant senior Management every quarter.
