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29 28 Best World International Limited
Annual Report 2011
Best World International Limited
Annual Report 2011
Audit Committee
Principle 11: The Board should establish an Audit Committee (“AC”) with written terms of reference which clearly
set out its authority and duties.
The AC comprises of three members whom are non-executive independent directors.
Chairman : Mr Lee Sen Choon
Member : Mr Robson Lee Teck Leng
Member : Mr Ravindran Ramasamy
The Chairman, Mr Lee Sen Choon, has more than 20 years of experience in accounting, auditing, taxation
and corporate secretarial work. The other members of the AC possess experience in fnance, legal, business
management and are exposed to regular updates from the relevant regulators. They are considered to be well
qualifed by the Board to discharge their duties in the AC.
The AC assists the board in discharging its responsibility to safeguard the Company’s assets, maintain adequate
accounting records, develop and maintain effective systems of internal control.
The terms of reference of the AC are:
a) To review the audit plan, system of internal accounting controls and the audit report in conjunction with
external auditors;
b )To review the assistance given by the Company’s offcers to the external auditors;
c)To review and report to the Board on the adequacy and effectiveness of the company’s internal controls;
d )To review the independence and objectivity of the external auditors annually;
e) To nominate external auditors for re-appointment;
f )To review the fnancial statements of the Company including quarterly and full year results and the
respective announcements before submission to the Board;
g )To oversee the Group Whistle Blowing Policy;
h )To give due consideration to the requirements of Stock Exchange Listing Rules; and
i) To review interested person transactions.
The AC has the authority to investigate any matter within its terms of reference and enjoys full access to and co-
operation from management to enable it to discharge its function properly.
The AC meets with the external auditors without the presence of the Company’s Management annually and an
annual review is conducted of the volume of non-audit services to satisfy itself that the nature and extent of
such services will not prejudice the independence and objectivity of the auditors before recommending their
re-appointment to the Company. Details of non-audit fees payable to independent auditors of the Company and
other independent auditors disclosed in Note 10 to the Financial Statements.
Internal Control
Principle 12: The Board should ensure that the Management maintains a sound system of internal controls to
safeguard the shareholders’ investments and the company’s assets.
It is the opinion of the Board, with the concurrence of the AC that, from the results of reviews and enquiries made,
the system of internal controls maintained by the Company’s management throughout the fnancial year 2011
provides reasonable assurance against material fnancial misstatements or loss, and includes the safeguarding
of assets, the maintenance of proper accounting records, the reliability of fnancial information, compliance with
appropriate legislation, regulation and best practice, and the identifcation and management of business risks.
The Enterprise Risk Management ( “ERM”) committee assists the Board in identifying and addressing risks on a
timely basis. The committee has also set in place a monitoring process where information is gathered from all
the regions with regards to the top risks the company is exposed to.
Chaired by our Chief Operating Offcer, Mr Huang Ban Chin, the committee meets quarterly to discuss risk
issues covering operational, fnancial and compliance risks and reports material fndings and recommendations
to the board on signifcant matters.
The Control Self Assessment programme established in 2011 provides a framework to obtain detailed
assessment on the state of internal controls. The programme requires regions to review and report biannually
on the effectiveness of controls and the control environment to HQ and signifcant fndings are reported to the
AC. Internal audit and independent reviews will be conducted during the year to validate the self assessments.
To enhance our corporate governance, Best World has in place a whistle-blowing policy since 2010 to empower
employees with avenues to report suspected fraud, corruption, dishonest practices and other acts of misconduct.
For incidents of severe nature, the AC will be informed and an independent team reporting directly to the AC will
be established accordingly.
Internal Audit
Principle 13: The Company should establish an internal audit function that is independent of the activities it audits.
The Company has engaged the services of an external consultant to perform the internal audit functions. The
internal auditors report directly to the Chairman of the AC on any material non-compliance and internal control
weaknesses identifed in the course of audit.
Based on risk assessments performed, greater emphasis and appropriate review internal are planned for
high risk areas and material internal controls, including compliance with the group’s policies, procedures and
regulatory responsibilities. The internal audit plans proposed are reviewed and approved by the AC.
The Internal Audit methodology adopted by our internal auditors is consistent with the requirements of The
Institute of Internal Auditors.
CORPORATE
GOVERNANCE