The external auditors are required to confirm in writing on an annual basis to the Audit and Risk Management Committee (“ARMC”) that they have complied with the independence rules of their profession and regulations governing independence. The external auditors are required to maintain appropriate records to provide reasonable assurance that its independence from SMRT Holdings Berhad and its subsidiaries (“Group”) is not impaired.
Prior to its approval of the Audit Planning Memorandum, the ARMC will determine annually and report accordingly to the Board, whether it is satisfied that the independence of the external auditor has been maintained. The external auditor must remain independent of the Group at all times and comply with the requirements of applicable laws, rules and regulations dealing with auditor independence.
The ARMC reviews the performance of the external auditors on an annual basis. The focus of the annual review includes; the quality and rigour of the audit; the quality of service provided; the audit firm’s reputation; and the independence of the external auditor.
Where the performance of the external auditor is assessed as being unsatisfactory, the ARMC determines and recommends to the Board the course of action, which may include:
The range of services provided or may be provided by the Group’s external auditors are categorised as follows:
|3.1||Audit and audit related services
|3.3||Prohibited non-audited services
|Significant permissible non-audit assignments awarded to external auditors must be approved in advance by the ARMC or, between ARMC meetings, the ARMC Chair. All non-audit assignments are to be reported to the ARMC annually. This policy applies to services supplied by the external auditors and their related firms to the Group, its related entities and the trusts and entities managed by the Group.The key audit partner and the quality review partner should be rotated every five years or as mandated by local regulatory requirements.|