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ASCENDAS REAL ESTATE INVESTMENT TRUST
116
CORPORATE GOVERNANCE
Directors’ Opinion On Internal Controls
The CEO and the Head, Reporting, Compliance and Corporate Services have provided their confrmation to the Board that to the best of their
knowledge, the system of risk management and internal controls is adequate, the fnancial records have been properly maintained and the
fnancial statements give a true and fair view of the Group’s operations and fnances.
The Board recognises the importance of sound internal controls and risk management practices for good corporate governance. The Board
afrms its overall responsibility for the Group’s systems of internal controls and risk management, and for reviewing the adequacy and integrity
of those systems on an annual basis. The internal control and risk management functions are performed by the Manager’s key executives and
are reported to the AC for review.
It should be noted, in the opinion of the Board that, in the absence of evidence to the contrary, such systems are designed to manage rather
than to eliminate the risk of failure to achieve business objectives, and that it can provide only reasonable, and not absolute assurance against
material misstatement of loss, and include the safeguarding of assets, the maintenance of proper accounting records, the reliability of fnancial
information, compliance with appropriate legislation, regulations and best practices, and the identifcation and containment of business risk.
The Board notes all internal control systems contain inherent limitations and no system of internal controls can provide absolute assurance
against the occurrence of material errors, poor judgment in decision-making, human error losses, fraud or other irregularities.
Based on the internal controls established and maintained by the Manager, work performed by the internal and external auditors, and reviews
performed by the Management, the various Board Committees and the Board, the AC and the Board are of the opinion that there are adequate
internal controls and risk management systems in place within the Group to address material fnancial, operational, compliance and information
technology risks faced by A-REIT as at 31 March 2014.
The Board has also received assurance from the CEO and the Head, Reporting, Compliance and Corporate Services of the Manager that:
(i)
the fnancial records have been properly maintained and the fnancial statements give a true and fair view of the operations and fnances
of A-REIT and the Manager; and
(ii)
the risk management and internal control systems have been adequate and remain efective.
AUDIT COMMITTEE
Principle 12:
Establishment of an Audit Committee with written Terms of Reference
The AC is appointed by the Board from among the Directors of the Board, all of whom (including the Chairman of the AC) are independent
Directors. The members of the AC are Mr Henry Tan (Chairman), Mr Chia Kim Huat, Mr Teo Eng Cheong and Mr Marc Teo.
The Board is of the view that the members of the AC are appropriately qualifed to discharge their responsibilities. Mr Henry Tan, Mr Teo Eng
Cheong and Mr Marc Teo have extensive accounting and fnancial management expertise and experience, and Mr Chia is a qualifed lawyer
with considerable experience and expertise.
The core functions of the AC comprise oversight of the integrity of the fnancial statements and related disclosures, oversight, assessment and
review of internal controls, review of the internal and external auditors’ fndings on internal controls, making recommendations to the Board
on the appointment, re-appointment of the external auditor and the remuneration of the external auditor. The AC also reviews the quality and
reliability of information prepared for inclusion in fnancial reports. The AC is responsible for the nomination of external auditors and reviewing
the adequacy of existing audits in respect of cost, scope and performance.
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