The ARC has direct and unfettered access to the external auditors and internal auditors. The ARC also meets (a) with the external auditors and (b) with the internal auditors, in each case without the presence of management, at least annually to discuss matters or concerns. ARC meetings are attended by the key executive officers as well as the internal and external auditors. The ARC members are kept updated on changes to accounting standards and significant accounting matters involving the exercise of judgment. In addition, the ARC is entitled to seek independent professional advice, or attend relevant seminars and/or informative talks at the Manager’s expenses from time to time to apprise themselves of accounting standards/financial updates. During FY2024, the ARC reviewed and approved both the internal and external auditors’ plans to ensure that the scope of audit was sufficient for purposes of reviewing the significant internal controls of MUST and the Manager. Such significant controls comprise financial, operational, compliance and information technology controls. All audit findings and recommendations put up by the internal and external auditors were forwarded to the ARC. Significant issues were discussed at these meetings. Taking cognisance that the external auditor should be free from any business or other relationships with MUST that could materially interfere with its ability to act with integrity and objectivity, the ARC undertook a review of the independence of the external auditor and gave careful consideration to MUST’s relationships with them during FY2024. In determining the independence of the external auditor, the ARC reviewed all aspects of MUST’s relationships with it, including the processes, policies and safeguards adopted by MUST and the external auditor relating to audit independence. The ARC also considered the nature of the provision of the non-audit services in FY2024 and the corresponding fees and ensured that the fees for such non-audit services did not affect the independence of the external auditor. Based on the review, the ARC is of the opinion that the external auditor is, and is perceived to be, independent for the purpose of MUST’s statutory financial audit. In the review of the financial statements, the ARC has discussed with management the accounting principles that were applied and their judgement of items that might affect the integrity of the financial statements. The following significant matters impacting the financial statements were discussed with management and the external auditor. Key Audit Matter Review by the ARC Valuation of investment properties and asset held for sale The ARC evaluated the qualifications, competence and independence of the valuer, Cushman & Wakefield of Texas, Inc. In addition, the ARC discussed the portfolio property valuation methodologies and assumptions used by the valuers with management, focusing on significant changes in fair value measurements and key drivers of the changes. The ARC considered the findings of the external auditors, including their assessment of the appropriateness of valuation methodologies and reasonableness of the underlying key assumptions applied in the valuation of investment properties. The ARC was satisfied with the valuation process, the methodologies used and the valuation of investment properties and asset held for sale as adopted and disclosed in the financial statements as at 31 December 2024. The above are included as key audit matters in the Auditor’s Report pages 140 to 143 of the Annual Report. For FY2024, an aggregate amount of US$436,792 comprising non-audit service fees of US$29,109 and audit service fees of US$407,683 was paid/payable to MUST’s external auditor. The non-audit fees were paid to the auditors for services rendered in relation to the divestment of Capitol during the year. During the year, changes to accounting standards and accounting issues which had a direct impact on the financial statements were reported to and discussed with the ARC at its meetings. The Manager confirms, on behalf of MUST, that MUST has complied with Rule 712 and Rule 715 of the Listing Manual in relation to the appointment of its auditing firm. The Manager outsourced its internal audit function to KPMG Services Pte. Ltd. (KPMG), which is staffed by qualified professionals with relevant qualifications and experience. The audit methodology is in conformance with the International Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors. ANNUAL REPORT 2024 | 133
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