Creative 2015 Annual Report Download - page 10

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CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
The Board reviews the Group’s business and operational activities as presented by the management to identify areas of signicant
risks and recommends as appropriate, the measures to control and mitigate such risks. Annually, the Board reviews the adequacy
and effectiveness of the Company’s risk management and internal control systems, including nancial, operational, compliance
and information technology controls.
For the nancial year ended 30 June 2015, the Board has received assurance from the CEO and CFO that:
• the nancial records have been properly maintained and the nancial statements give a true and fair view of the Group’s
operations and nances; and
• the risk management and internal control systems have been adequate and effective to address the risks which the Group
considers relevant and material to its operations.
The Board, with the concurrence of the Audit Committee, is of the opinion that the Group’s internal controls (including nancial,
operational, compliance and information technology controls) and risk management systems have been adequate and effective for
the risks which the Group considers relevant and material to its operations for the nancial year ended 30 June 2015. This opinion
is arrived at based on the framework established and maintained by the Group, the work performed by the internal and external
auditors, reviews carried out by Management, as well as assurances received from the CEO and CFO.
PRINCIPLE 12: AUDIT COMMITTEE
Given the growing emphasis accorded to risk management, the Board has nominated the Audit Committee (“AC”) to assist the
Board in risk management responsibilities and function.
The AC consists of three Directors, all of whom are independent non-Executive Directors. The Chairman of the AC is Mr Lee
Kheng Nam. The other two members are Mr Ng Kai Wa and Mr Lee Gwong-Yih. All members of the AC have the appropriate
accounting or relevant nancial expertise or experience.
The principal functions of the AC, among other matters, are:
• to review and recommend for approval of the Board the quarterly and full year nancial results and related announcement
to be released on SGX-ST;
• assist the Board to review and oversee the internal controls and the Group’s Enterprise Risk Management Framework;
• provide guidance to management and renders assistance to the Board to determine the nature and extent of signicant risks
which the Board would be willing to take in achieving the Group’s strategic objectives;
• to review the scope and results of the audit and its cost-effectiveness and the independence and objectivity of the external
auditors;
• to review the scope of work of the appointed internal auditors and evaluate the effectiveness of the internal auditors;
• to review the ndings of the internal and external auditors and the response from the management;
• to make recommendations to the Board on the appointment, re-appointment and/or removal of internal and external auditors,
and to approve the remuneration and terms of engagement of the internal and external auditors;
• to review interested person transactions;
• to review whistle-blowing investigations within the Group and ensuring appropriate follow-up in accordance with the Group’s
whistle-blowing policy; and
• reports any material matters, ndings and recommendations to the Board.
The number of meetings convened by the AC is set out in Principle 1: The Board’s Conduct of its Affairs.
During the nancial year, the AC has reviewed with the CFO and the external auditors on changes to accounting standards and
issues which are relevant to the Group and have a direct impact on the Group’s nancial statements.
The Company has in place a whistle-blowing procedure where staff of the Group can raise in condence concerns on possible
CORPORATE GOVERNANCE
For the nancial year ended 30 June 2015
PRINCIPLE 11: RISK MANAGEMENT AND INTERNAL CONTROLS (cont’d)