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MTQ Corporat ion Limi ted Annual Repor t 2012/13 26
CORPORATE GOVERNANCE REPORT
In addition, the Audit Committee reviews the scope and results of the audit and its cost effectiveness, and on an annual basis, the
independence and objectivity of the external auditors of the Group. In doing so, the Audit Committee has also taken into account the
nature and extent of non-audit services provided by them and has confirmed that the non-audit services provided by the external
auditors would not affect their independence.
The Audit Committee meets with the internal and external auditors at least on an annual basis, without the presence of management,
to review the overall scope of both internal and external audits, and the assistance given by management to the auditors. The
Audit Committee pays full attention to any material weaknesses reported and the recommendations proposed by both the internal
and external auditors to ensure that the Group maintains a sound system of internal controls. In addition to the above, the Audit
Committee reviews the quarterly and full-year financial statements of the Group before submitting them to the Board for its approval
and the announcement of the financial results.
The Group adopts a bottom-up approach for the risk management process. Business units implement appropriate risk management
frameworks and have primary responsibility and accountability to identify and manage potential risks affecting the Group, and to
ensure sufficient controls are in place to monitor and mitigate these risks. Details of the Group’s risk management policies and
processes are provided under the “Risk Management” section of the Annual Report.
The Group outsources part of its internal audit function to Robert Tan & Co., a corporate member of the Institute of Internal Auditors
Singapore. In addition, the independent in-house internal audit division supplements the internal audit activities to further enhance the
risk management of the Group. Reporting directly to the Audit Committee, both internal audit teams plan their work in consultation
with, but independent of management and their yearly plan is submitted to the Audit Committee for review and approval.
The Audit Committee has reviewed and is satisfied:
 with the adequacy and effectiveness of the Group’s internal controls, including financial, operational and compliance controls
and risk management policies and systems;
 with the adequacy and effectiveness of the internal audit function;
 that the internal audit function is adequately resourced, and has appropriate standing within the Company and the Group; and
 that the independence of the external auditor has not been compromised in relation to the non-audit services provided.
Based on the internal controls and risk management framework established and maintained by Management, work performed by
the internal and external auditors, and reviews performed by management, the Board and the various Board Committees, the Board,
with the concurrence of the Audit Committee, is of the opinion that the Group’s internal controls, addressing financial, operational and
compliance risks which the Board considers relevant and material to its operations, were adequate as at 31 March 2013.
The Board notes that the system of internal controls and risk management provides reasonable, but not absolute, assurance that the
Group will not be adversely affected by any event that could be reasonably foreseen as it works to achieve its business objectives.
The Company has adopted a whistle blowing policy where employees of the Group may raise concerns about possible improprieties
in matter of financial reporting or other matters in confidence. To ensure independent investigation of such matters and appropriate
follow up actions, all whistle blowing reports are to be sent to the Audit Committee. Details of the whistle blowing policy are given to
all staff and new recruits during orientation. The Audit Committee has received no complaints up to the date of this report.
The Audit Committee is satisfied that the Company has complied with Listing Rules 712 and 715 of the Listing Manual regarding the
appointment of auditors of the Company and its subsidiaries.
The Audit Committee has recommended to the Board the re-appointment of Ernst & Young LLP as the external auditors of the
Company for the financial year ending 31 March 2014.