The Audit Committee (AC) comprises all independent Directors with majority, including the AC Chairman, having relevant accounting or related financial management experience. The AC does not comprise any former partners or directors of ST Engineering’s existing external auditing firm within two years preceding their appointment to the AC, and none of them have any financial interests in the auditing firm. Lien Siaou-Sze was appointed as a member of the AC on 1 November 2024, and Lim Ah Doo stepped down from both the Board and the AC on 10 November 2024. Under its terms of reference, the AC performs the following duties and responsibilities: • Reviews the significant financial reporting issues and judgements so as to ensure the integrity of the financial statements and all announcements relating to financial performance; • Reviews the adequacy and effectiveness of internal controls and risk management systems; • Reviews the assurance from the Group President & CEO and the Group CFO on the financial records and financial statements; • Makes recommendations to the Board on the appointment, removal, remuneration and the terms of engagement of the external auditors; • Reviews the adequacy, effectiveness, independence, scope and results of both the external and the internal audit functions; c) Control Self-Assessment Process The Control Self-Assessment (CSA) process plays an essential role in maintaining an adequate and effective internal control system. To promote ownership and accountability for managing risks and embed risk management into business processes, we have formalised the terms of reference for Risk and CSA Champions. The R&A function provides training to equip these Risk and CSA Champions with the required skill sets in the execution of their roles. d) Risk Communication and Awareness As part of the annual risk and compliance training programme, key risk and compliance topics covering the ST Engineering Code of Business Conduct and Ethics, Anti-bribery and Corruption, Conflict of Interest, Artificial Intelligence Governance & Ethics are shared with staff through e-learning. The RSC is updated regularly on the status of these trainings. System of Internal Control and Risk Management The Board receives, at regular intervals, updates from the Board Committees on the key business risks, the material controls to manage these risks, and the internal audit reports on the operational effectiveness of the material controls. Accordingly, the Board, through the Board Committees and supported by the R&A and Internal Audit functions, is satisfied that internal control issues are identified on a timely basis and remedial actions are taken promptly to minimise lapses. The Board has received assurance from the Group President & CEO and Group CFO on the adequacy and effectiveness of the Company’s internal controls and risk management system. Based on the internal controls and risk management process established and maintained by the Group, work performed by the internal and external auditors, and reviews performed by Management and various Board Committees, the Board is satisfied that the Group’s framework of internal controls (including financial, operational, compliance and information technology controls) as well as the risk management systems are adequate and effective as at 31 December 2024. The Audit Committee concurs with the Board on the adequacy and effectiveness of the internal controls and risk management systems established and maintained by the Group as at 31 December 2024. In this regard, the Board also notes that no framework of internal controls can provide absolute assurance against the occurrence of material errors, poor judgment in decision making, human error, fraud or other irregularities. Audit Committee (Principle 10) Kevin Kwok Khien (Chairman) Lien Siaou-Sze Song Su-Min AC MET IN 2024 6 TIMES 99 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
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