C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
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announcements relating to the company’s financial
performance;
• reviewing and monitoring the effectiveness and
adequacy of the systems of internal controls, including
financial, operational, compliance, information
technology and risk management controls and
procedures that Management and the Board have
established;
• ensuring that procedures are in place for compliance
with all applicable laws, regulations, rules, codes of
conduct and standards of good practices;
• reviewing the comprehensiveness of the audit and
business processes to manage risks and safeguard
both CIT’s and the Manager’s assets and enhance
Unitholders’ and shareholders’ value;
• reviewing the effectiveness of the company’s internal
audit function; including its audit plans and the scope
and effectiveness of the internal audit procedures;
• reviewing the adequacy, independence, effectiveness,
objectivity and fees of the external auditors and
recommending to the Board on any proposals to the
Unitholders on any replacement, appointment or
reappointment of the auditors; and approving the
remuneration and terms of their engagement; and
• reviewing related party transactions to ascertain
compliance with internal procedures and provisions of
applicable laws and regulations.
The ARCC’s activities for FY2015, included the following:
(
a) Financial Reporting
The ARCC reviewed the interim and annual financial
statements and financial announcements required
by the SGX-ST, for recommendation to the Board for
approval.
(b) External Audit
The ARCC reviewed and approved the audit plan and
scope with the external auditors and critically reviewed
the report on the audit of the year-end financial
statements.
CORPORATE GOVERNANCE
The ARCC also reviewed and considered the re-
appointment of the external auditors and is satisfied
with the suitability, independence and objectivity of the
external auditors and has recommended to the Board
its re-appointment.
The review took into consideration (i) adequacy of the
resources and experience of the auditing firm and the
audit partner, (ii) the terms of the engagement, (iii)
size and complexity of CIT and its subsidiary, (iv) the
number and experience of supervisory and professional
staff assigned to each audit, (v) the fees paid for audit
and non-audit services performed, and (vi) suitability,
objectivity and independence from Management and
the Manager based on their performance to date.
The aggregate amount of the audit fees paid/payable
by CIT and its subsidiary to the external auditors for
FY2015 was $298,000, of which audit and non-audit
fees amounted to $180,000 and $118,000 respectively.
The ARCC has undertaken a review of all non-audit
services provided by the auditors and they would not,
in the ARCC’s opinion, affect the independence of the
auditors.
Accordingly, the Manager confirms that CIT complies
with Rule 712 and 715 of the Listing Manual with
respect to the suitability of the audit firm for CIT and
its subsidiary.
(c) Internal Audit
The 3-year Internal Audit Rotational Plan for Year 2015
to 2017 was approved by the ARCC in 2014.
The ARCC reviewed the scope of internal audit work
and its audit program; it reviewed the findings during
the year and Management’s responses thereto; and it
satisfied itself as to the adequacy of the internal audit
function.
An annual assessment was performed on PwC LLP to
evaluate the effectiveness of the internal auditors.
(d) IPT
The ARCC reviewed IPT to ensure compliance with
internal procedures, provisions of the Listing Manual
and the Property Funds Appendix.
