To protect shareholder interests and ensure better corporate governance, the Securities Investors Association of Singapore (SIAS) has made it compulsory for companies to have an internal auditor, reports ChannelNews Asia.
According to CNA, the tightened listing rules follows a recent deluge of S-chip companies requesting for trading suspensions to investigate their accounts.
"I would like this to be a listing requirement because if it is then you would find less and less of this happening. Company's internal controls need to be tightened up and one of the best ways to do this is to have an internal auditor, or internal audit department or function," says David Gerald, president and CEO of SIAS.
Quoting market observers, CNA says the new rule should be strictly enforced, as companies can get away with it by citing various excuses such as cost constraints.
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