The ARCC has explicit authority to investigate any matter
within its terms of reference. It has full access to, and
the co-operation of the Management and full discretion
to invite any director or staff to attend its meetings.
The ARCC has adequate resources, including access to
external consultants and auditors, to enable it to discharge
its responsibilities properly.
The ARCC functions are broadly defined as assisting the
Board in fulfilling its oversight responsibilities by:
• reviewing the significant financial reporting issues
and judgements so as to ensure the integrity of the
financial information provided by the Manager to
any governmental authority or the public and any
announcements relating to the company’s financial
performance;
• reviewing andmonitoring 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 the proposals to
the Unitholders 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 financial year ended
31 December 2014, 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.
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 firmand
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 financial year ended 31 December 2014
was S$296,000 , of which audit and non-audit fees
amounted to S$186,000 and S$110,000 respectively.
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.
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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