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management and internal controls
that address material risks, including
material financial, operational,
compliance and information
technology risks. No significant
weaknesses were noted from the
auditors’ respective reviews. The
findings were discussed, followed up
and where appropriate, rectifications
were made by Management.
The Board has also received
assurance from the CEO and CFO
of the Manager that:
(a) The financial records of Starhill
Global REIT have been properly
maintained and the consolidated
financial statements give a true
and fair view of Starhill Global
REIT’s operations and finances;
and
(b) Starhill Global REIT’s system of
risk management and internal
controls in place within the Group
were adequate and effective as
at 30 June 2017 in addressing
the material risks in the Group,
including material financial,
operational, compliance and
information technology risks.
Based on the system of risk
management and internal controls
established and maintained by
the Manager, work performed by
the internal and external auditors,
reviews performed by Management,
and the assurance from the CEO
and CFO of the Manager, the Board
with the concurrence of the Audit
Committee is of the opinion that
Starhill Global REIT’s system of risk
management and internal controls
in place within the Group were
adequate and effective as at 30
June 2017 in addressing the material
risks in the Group, including material
financial, operational, compliance
and information technology risks.
The CEO and the CFO of the
Manager have obtained similar
assurances from the function heads
of the Manager.
The Board notes that the system
of risk management and internal
controls provides reasonable, but
not absolute, assurance that Starhill
Global REIT will not be adversely
affected by any event that could be
reasonably foreseen as it works to
achieve its business objectives.
In this regard, the Board also notes
that no system of risk management
and internal controls can provide
absolute assurance against the
occurrence of material errors,
poor judgment in decision making,
human error, losses, fraud or
other irregularities.
Audit Committee
Principle 12:
The Board should establish an Audit
Committee with written terms of
reference which clearly set out its
authority and duties.
The Audit Committee is established
by the Board from amongst the
Directors of the Manager and
currently comprises three members,
all of whom are Independent Non-
Executive Directors. The members
of the Audit Committee as at 30
June 2017 are Mr Lim Kok Hoong
(Chairman), Dr Michael Hwang and
Mr Ching Yew Chye. Dr Michael
Hwang has since been succeeded
on the Audit Committee by Mr Tan
Woon Hum with effect from
1 August 2017. The members of the
Audit Committee, collectively, have
relevant accounting and financial
management expertise or experience
and are qualified to discharge the
Audit Committee’s responsibilities.
No former partner or director of the
Manager’s existing auditing firm or
audit corporation is a member of
the Audit Committee within a period
of 12 months commencing on the
date of his ceasing to be a partner
of the auditing firm or director of the
auditing corporation, or for as long
as he has any financial interest in the
auditing firm or auditing corporation.
The Audit Committee assists
the Board in overseeing the ERM
framework and any matters of
significance affecting financial
reporting and internal controls
of Starhill Global REIT.
The terms of reference for the
Audit Committee include:
1. reviewing audit reports to ensure
that where deficiencies in internal
controls have been identified,
appropriate and prompt remedial
action is taken by Management;
2. monitoring the procedures in
place to ensure compliance with
applicable legislation, the listing
manual of the SGX-ST and the
Property Funds Appendix;
3. reviewing and making
recommendations to the Board in
relation to the financial statements
and the audit report;
4. monitoring the procedures established
to regulate Related Party Transactions
(as defined below), including ensuring
compliance with the provisions of the
relevant regulations;
5. making recommendations to
the Board on the appointment,
reappointment and removal of the
external auditors, and approving
the remuneration and terms of
engagement of such auditors; and
6. ensuring that the internal audit
function is adequately resourced
through outsourcing the appointment
to a reputable accounting firm
where appropriate and approving
their appointment, removal and
remuneration.
During FY 2016/17, the Audit Committee
performed independent reviews of
the financial statements of Starhill
Global REIT before the announcement
of Starhill Global REIT’s quarterly and
full-year results, including key areas of
management judgment.
The Audit Committee also reviewed
and approved both the internal auditor’s
and the external auditor’s audit plans
of Starhill Global REIT for FY 2016/17. The
audit findings and recommendations
put up by the internal auditor and the
external auditor were reported and
discussed at the Audit Committee
meetings.
The Audit Committee is responsible
for the nomination of external auditors
and internal auditors, and reviewing the
adequacy and effectiveness of existing
audits in respect of cost, scope and
performance. The Audit Committee
meets with the internal auditor at least
once a year and with the external auditor
at least once every quarter without the
presence of Management, to discuss
any matters which the Audit Committee
or the auditors believe should be
discussed privately without the
presence of Management.
The Audit Committee is authorised to
investigate any matters within its terms
of reference. It has unfettered access to
and cooperation from Management and
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