notes to the financial statements - Investor Relations

CORPORATE GOVERNANCE
Annual Report 2011
b) The company’s quarterly and audited annual financial statements and related footnotes, and the integrity of financial reporting
of the Company and accounting principles, for recommendation to the Board for approval; and
c) The auditor’s audit of the annual financial statements and reports.
Where necessary, the AC meets with internal and external auditors – without the presence of Management – to review any matters
that might be raised privately.
The AC has received the requisite information from the external auditors evidencing the latter’s independence. It has also reviewed
the volume and nature of non-audit services provided by the external auditors during the current financial year. Based on this
information, the AC is satisfied that the financial, professional and business relationships between the Company and the external
auditors will not prejudice the independence and objectivity of the external auditors.
The AC reviewed the performance of the existing auditors and decided to nominate for re-appointment, KPMG, as the Company’s
auditors for the financial year 2012.
CWT has an open culture where there is no restriction for staff of the Company to access the AC, Board Chairman, Group CEO,
members of the EXCO, the Audit Controller, the Chief Financial Officer and the Manager of Human Resources to raise concerns
about improprieties. Contact details of these persons are accessible to all staff.
In the review of the financial statements for the year ended 31 December 2011, the AC discussed with Management and the external
auditors the accounting principles that were applied and their judgement of items that might affect the financial statements. Based
on the review and discussions, the AC is of the view that the financial statements are fairly presented in conformity with the relevant
Singapore Financial Reporting Standards in all material aspects.
Internal Audit (Principle 13)
CWT has put in place an internal audit function that is independent of the activities it audits. The Audit Controller is an independent
qualified resource reporting directly to the AC on all audit matters, and to the Chief Financial Officer on administrative matters.
The Audit Controller meets the standards set out by recognised professional bodies and operates within the framework stated in its
Internal Audit Charter, which is approved by the AC. Its mission is to provide independent review, objective assessment of CWT’s
internal control framework/systems to add value and improve CWT’s operations. It helps CWT achieve its objectives by bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk management, controls and governance processes.
The Audit Controller plans its internal audit schedules annually in consultation with, but independent of, Management and its plan is
submitted to and approved by the AC. The audit plans are aligned to the business objectives of the Company and the scope of the
audit is driven primarily from a risk-based audit approach, with audit resources being focused on higher risk assignments.
The Audit Controller’s reports are distributed to the AC, Management and the external auditors as and when issued. These reports
are discussed with Senior Management periodically, and with the AC quarterly.
In addition, the Audit Controller also works with the external auditors to discuss the audit scope and findings as well as to coordinate
their specific audit efforts to achieve maximum synergies. Supervisory reports issued by the external auditors and the Audit Controller
are actively followed up for implementation by Management based on the agreed timelines.
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