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CapitaLand Mall Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
(d) reviews the scope and results of the external audit and independence and objectivity of the external auditors;
(e) makes recommendations to the Board on the proposals to Unitholders on the appointment, reappointment
and removal of the external auditors, and approving the remuneration of the external auditors;
(f) reviews and approves processes to regulate transactions involving an Interested Person (as defined in
Chapter 9 of the Listing Manual) and/or Interested Party (as defined in the Property Funds Appendix) (each,
an Interested Person) and CMT and/or its subsidiaries (Interested Person Transactions) to ensure compliance
with the applicable regulations, in particular, the requirements that the transactions are on normal commercial
terms and are not prejudicial to the interests of CMT and its minority Unitholders and, in respect of any property
management agreement which is an Interested Person or Interested Party transaction, the requirement that
reviews of the Property Manager’s compliance with the terms of the property management agreement and
any remedial actions taken, where necessary, are carried out at intervals commensurate with the tenure of
such agreement; and
(g) reviews the policy and arrangements by which employees of the Manager and any other persons may,
in confidence, report suspected fraud or irregularity or suspected infringement of any laws or regulations
or rules, or raise concerns about possible improprieties in matters of financial reporting or other matters
with a view to ensuring that arrangements are in place for such concerns to be raised and independently
investigated, and for appropriate follow-up action to be taken.
The AC has reviewed the nature and extent of non-audit services provided by the external auditors during
FY 2015 and the fees paid for such services. The AC is satisfied that the independence of the external auditors
has not been impaired by the provision of those services. The external auditors have also provided confirmation
of their independence to the AC. The aggregate amount of fees paid and payable to the external auditors for
FY 2015 was approximately S$620,250 of which audit fees amounted to approximately S$328,250 and non-audit
fees amounted to approximately S$292,000.
In FY 2015, the AC also met with the internal and external auditors, without Management’s presence, to discuss
the reasonableness of the financial reporting process, the system of internal controls, and the significant
comments and recommendations by the auditors. Where relevant, the AC makes reference to the best practices
and guidance in the Guidebook for Audit Committees in Singapore and the practice directions issued from
time to time in relation to the Financial Reporting Surveillance Programme administered by the Accounting and
Corporate Regulatory Authority of Singapore.
The Manager confirms, on behalf of CMT, that CMT complies with Rule 712 and Rule 715 of the Listing Manual.
Internal Audit
Principle 13:
The company should establish an effective internal audit function that is adequately resourced and
independent of the activities it audits.
The Manager has in place an internal audit function supported by CL’s Internal Audit Department (CL IA) which
reports directly to the AC and administratively to the CEO. CL IA plans its internal audit schedules in consultation
with, but independently of, Management and its plan is submitted to the AC for approval prior to the beginning of
each year. The AC also meets with CL IA at least once a year without the presence of Management. CL IA has
unfettered access to the Manager’s documents, records, properties and employees, including access to the AC.
CL IA is a corporate member of the Singapore branch of the Institute of Internal Auditors Inc. (IIA), which has its
headquarters in the United States of America. CL IA subscribes to, and is guided by, the International Standards
for the Professional Practice of Internal Auditing (Standards) developed by the IIA and has incorporated these
Standards into its audit practices.
