34
GRAND BANKS YACHTS LIMITED
ANNUAL REPORT
2016
CORPORATE GOVERNANCE REPORT
Internal Audit
Principle 13:
The company should establish an effective internal audit function that is adequately resourced and
independent of the activities it audits.
Guidelines Of The Code
Grand Banks Corporate Governance Practices
13.1 The Internal Auditor’s (“IA”) primary line of reporting should
be to the AC Chairman although the Internal Auditor would
also report administratively to the CEO.
The AC approves the hiring, removal, evaluation and
compensation of the head of the internal audit function,
or the accounting/auditing firm or corporation to which
the internal audit function is outsourced. The Internal
Auditor should have unfettered access to all the company’s
documents, records, properties and personnel, including
access to the AC.
The internal auditor reports directly to the RMAC.
The RMAC approves the hiring, removal, evaluation and
the fees of the Internal Auditor. The Internal Auditor
has unfettered access to all the Group’s documents,
records, personnel and the RMAC.
13.2 The AC should ensure that the internal audit function is
adequately resourced and has appropriate standing within
the company. For the avoidance of doubt, the internal
audit function can be in-house, outsourced to a reputable
accounting/auditing firm or corporation, or performed
by a major shareholder, holding company or controlling
enterprise with an internal audit staff.
The internal audit function is outsourced to an external
organization, JF Virtus Pte Ltd.
13.3 The internal audit function should be staffed with persons
with the relevant qualifications and experience.
The internal auditor is a Certified Internal Auditor and
is guided by The Standards of The Institute of Internal
Auditors in his work.
13.4 The Internal Auditor should carry out its function according
to the standards set by nationally or internationally
recognized professional bodies including the Standards
for the Professional Practice of Internal Auditing set by The
Institute of Internal Auditors.
Please refer to the Group’s practices in Guideline 13.3.
13.5 The AC should, at least annually, review the adequacy and
effectiveness of the internal audit function.
The RMAC has determined the internal audit firm has
met or exceeded its obligations under the terms of
engagement. The internal audit firm reports to the RMAC
and has unrestricted, direct access to the RMAC. The
RMAC reviews and approves the annual internal audit
plan as well as reviews the results of the regular audits
including the monitoring of the implementation of the
improvements required on internal control weaknesses
identified. The Board is satisfied with the adequacy of
the internal audit function and is confident it has an
appropriate standing within the Group, is adequately
resourced and is independent of the activities it audits.
