<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Most S-chip firms pass scrutiny: SGX
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Yang Huiwen
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->MOST S-chip companies listed here seem to be scandal-free, according to the Singapore Exchange.
Auditors conducting detailed investigations of the bank balances of listed companies operating in China have found nothing adverse to report for 80 per cent of them, the SGX said after receiving feedback from auditors on the areas of risk examined.
The remaining 20 per cent were not subject to in-depth checks, either because the size of their cash balances was 'immaterial' or because they had not reached the end of their financial year.
But detailed verification of these companies will be performed over the coming months, SGX added.
The checks on S-chips - which at the last count numbered 149 - were intensified in March after SGX called for greater vigilance in the light of financial and economic turmoil.
It highlighted high-risk areas that auditors should look into - including cash balances, accounts receivable and off-balance sheet items - and urged them to conduct additional checks.
In a statement yesterday, SGX said: 'They (auditors) have extended their audit procedures, including wider sampling of accounts receivable, and more cases of visiting banks to obtain direct source confirmation of bank balances.
'While business failure or wrongdoing can occur among listed companies in any market, higher standards of governance will result in more rapid discovery, prompt attention and full disclosure and transparency.'
SGX said it will continue to closely monitor compliance as well as keep an eye on emerging risks.
It is in dialogue with market professionals, such as lawyers and auditors, on ways to strengthen corporate governance for all listed companies.
In particular, it will focus on firms at the listing stage and newly listed companies.
In April, SGX also highlighted areas for greater diligence in preparing companies for listing. These included appointing chief financial officers with relevant and appropriate experience, identifying independent directors to match the needs of the companies, and educating the firm's management on listing obligations.
'The exchange has been engaging in more frequent communication with listed companies, board directors, the audit and market professionals in the past few months,' it said.
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Yang Huiwen
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->MOST S-chip companies listed here seem to be scandal-free, according to the Singapore Exchange.
Auditors conducting detailed investigations of the bank balances of listed companies operating in China have found nothing adverse to report for 80 per cent of them, the SGX said after receiving feedback from auditors on the areas of risk examined.
The remaining 20 per cent were not subject to in-depth checks, either because the size of their cash balances was 'immaterial' or because they had not reached the end of their financial year.
But detailed verification of these companies will be performed over the coming months, SGX added.
The checks on S-chips - which at the last count numbered 149 - were intensified in March after SGX called for greater vigilance in the light of financial and economic turmoil.
It highlighted high-risk areas that auditors should look into - including cash balances, accounts receivable and off-balance sheet items - and urged them to conduct additional checks.
In a statement yesterday, SGX said: 'They (auditors) have extended their audit procedures, including wider sampling of accounts receivable, and more cases of visiting banks to obtain direct source confirmation of bank balances.
'While business failure or wrongdoing can occur among listed companies in any market, higher standards of governance will result in more rapid discovery, prompt attention and full disclosure and transparency.'
SGX said it will continue to closely monitor compliance as well as keep an eye on emerging risks.
It is in dialogue with market professionals, such as lawyers and auditors, on ways to strengthen corporate governance for all listed companies.
In particular, it will focus on firms at the listing stage and newly listed companies.
In April, SGX also highlighted areas for greater diligence in preparing companies for listing. These included appointing chief financial officers with relevant and appropriate experience, identifying independent directors to match the needs of the companies, and educating the firm's management on listing obligations.
'The exchange has been engaging in more frequent communication with listed companies, board directors, the audit and market professionals in the past few months,' it said.
