ESR-REIT Annual Report 2024 113 Internal Audit Given the Manager’s size and scale of operations, the internal audit function is outsourced to PricewaterhouseCoopers LLP (“PwC”) that reports directly to the ARCC Chairman and administratively to the Management. The ARCC reviews and recommends to the Board on the appointment, removal, evaluation as well as the compensation of the internal auditor. The ARCC reviews the internal audit programme and reports on a periodic basis, and monitors Management’s responsiveness to the findings and recommendations of the internal auditor. PwC adopts the Standards for the Professional Practice of Internal Auditing set by the Institute of Internal Auditors and has unfettered access to all of ESR-REIT’s and Manager’s documents, records, properties and personnel including the ARCC. An annual internal evaluation was also conducted on PwC as the internal auditor of ESR-REIT by the ARCC and the Management to evaluate the performance and effectiveness of the internal auditor. The ARCC reviewed the scope of internal audit work and the audit programme as well as the reports submitted by PwC and is satisfied that the internal audit function is independent, effective, adequately resourced, and has appropriate standing within the Manager to perform its functions effectively. Whistleblowing Policy The Manager is committed to conduct its business within a framework that fosters the highest ethical and legal standards. The Manager has established a Policy on Whistleblowing which has been communicated to all employees and details of the policy are available on ESR-REIT’s website. Employees of the Manager and any external parties may raise, in good faith and in confidence, any concerns about possible improprieties in matters of financial reporting or other matters to the ARCC Chairman, without fear of reprisals by submitting a whistleblowing report using the prescribed form found on ESR-REIT’s website at https:// www.esr-reit.com.sg/whistleblowing.html. The Manager prohibits discrimination, retaliation or harassment of any kind against a whistleblower who submits a report in good faith. Any party found to have taken reprisal actions or victimised the whistleblower may face disciplinary action, including the possibility of dismissal. External Audit Ernst & Young LLP (“EY”) was appointed as the external auditors of ESR-REIT since 25 April 2017. The ARCC reviewed and approved the audit plan and scope with the external auditors and critically reviewed the report on the audit of the financial statements. Throughout the year in review, the ARCC, together with the Management, reviewed the quality of work done, the performance as well as the independence of the external auditors. The aggregate amount of fees paid or payable to the external auditors for FY2024 was S$901,000, of which audit and non-audit fees amounted to S$662,000 and S$239,000 respectively. The ARCC has undertaken a review of all non-audit services provided by the external auditors and is satisfied that the independence and objectivity of the external auditors have not been impaired by the provision of those services. In reviewing the nomination of EY for re-appointment as external auditor of ESR-REIT and its subsidiaries until the conclusion of the next AGM, the ARCC had conducted the evaluation of EY via both a checklist, which had taken into consideration the Accounting and Corporate Regulatory Authority’s Audit Quality Indicators Disclosure Framework, as well as a face-to-face evaluation session. The ARCC had also considered the adequacy and experience of the engagement partner and key team members assigned, EY’s experience in the REIT sector and the size and complexity of the audit in the evaluation process. Based on the evaluation results, the ARCC is satisfied with the independence and performance of EY and has recommended to the Board the re-appointment of EY as the external auditors of ESR-REIT and its subsidiaries at the forthcoming AGM. The Board has taken into account the ARCC’s recommendation and concurred with the ARCC’s endorsement. Accordingly, the Manager confirms that ESR-REIT complies with Rules 712 and 715 of the Listing Manual with respect to the appointment of external auditors.
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