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(xiii) investigating any matters within the Audit Committee’s terms of reference, whenever it deems necessary;
and
(xiv) reporting to the Board on material matters, findings and recommendations.
The Audit Committee met with the external auditors separately without the presence of management during the
year. In conjunction with the policy for the provision of non-audit services adopted by the Audit Committee in
February 2013, the Audit Committee have reviewed, and is satisfied that the non-audit services provided to the
Forterra Group by the external auditors for the year ended 31 December 2012, does not affect the independence
and objectivity of the external auditors.
During the year, the Audit Committee met seven times. The activities at the meetings included the following;
• review of the quarterly and year end results and announcement required by the SGX-ST;
• review of changes to the Listing Manual and the resulting changes required for the financial statements of
Forterra;
• review of annual budgets and other forecast financial information to assist in future planning
• discussions with the external auditor on the annual audit plan and year-end timetable;
• reviewing and approving the scope of work to be undertaken by the external third party appointed to
undertake the internal audit function;
• monitoring the work performed by the external third party in relation to the internal audit of the risk
management and internal controls;
• reviewing the external auditors scope of work in relation to the 31 December 2012 year end audit;
• review of all interested person transactions and a quarterly review of the register of interested person
transactions to ensure compliance with the Listing Manual and the BTA;
• review of management’s bi-annual evaluation of the external auditor in line with the Accounting and
Corporate Regulatory Authority guidance; and
• approving the appointment of Chief Financial Officer and Financial Controller.
• engaging an external third party to assist in the preparation of The Risk Governance and Internal Control
Framework Manual for review by the Committee and recommendation to the Board.
The Board and Audit Committee have access to the Guidebook for Audit Committees in Singapore issued by
the Audit Committee Guidance Committee in October 2008. Where appropriate, the Audit Committee will adopt
relevant best practices set out in the Guidebook, which will be used as a reference to assist the Committee in
performing its functions. The Board has also received training on COCG issues.
A whistle blowing policy has been put in place to provide a channel through which employees of management
may report, in good faith and in confidence, any concerns in financial and other matters, and arrangements
have been put in place for independent investigation with appropriate follow-up action.
COCG Code Principle 13: Internal Audit
Forterra’s internal audit function has been outsourced to RSM Ethos Pte Ltd (“RSM”). RSM reports to the Audit
Committee on internal audit matters and reports to the CEO administratively.
An internal audit program continued during the financial year. The Audit Committee receives reports from RSM
at the completion of each stage of the internal audit program. The Audit Committee is also provided with a
detailed scope of work for the next stages of the internal audit program for their review and approval.
RSM conducts its internal audit according to the International Professional Practices Framework issued by the
Institute of Internal Auditors.
Specific duties included within the scope of work to be undertaken as part of the Internal Audit program include:
• an annual risk assessment of the controls and operating effectiveness; and
• presentation of the internal audit program annually to the Board of the Trustee-Manager and reporting to
the Board on the findings of the internal audit so that they may consider what action, if necessary, should
be taken.