FREP 17^th meeting of the 1^st Audit Committee was held in Quanzhou on Mar. 20^th. Mr. Warren Wilder, Chairman of the Audit Committee, and members of the Audit Committee including Mr. Chen Xiaobo, Mr. Lin Li and William A. KEILLOR were present at the meeting.

Madam Liu Cuixia, Chief Auditor, reported on the work done since the last audit committee meeting and summarized and reviewed the internal audit work carried out over the recent years; Mr. Joe Francis, General Manager of Finance Dept., reported on 2013 business controls, 2014 controls plan and shareholders audit preparations; Mr. Ji Houping, General Manager of Process Dept., reported on closure of audit gaps of Process Dept., 2013 KPMG audit focus areas and audit result. 

Committee members highly appreciated the efforts made by the Auditing Dept., thinking that internal audit made tremendous and fruitful efforts in the Company’s risk prevention, controls reinforcement and management improvement, etc., in particular, increasing audit consulting business and audit recommendations raised by varieties of specific services which indeed achieved “address source and emphasize prevention”; hope was delivered at the meeting to continue to leverage the professional advantage of audit, keep cross-functional cooperation with functional departments and achieve more success in self-help, business improvement and so on.

Process Dept. was recognized at the meeting in terms of its proactive attitude and the practice of following up audit issues and holding cross-functional workshops to come up with correction measures; Committee members expressed the satisfaction with the current overall situation of controls and hoped management level would strengthen efforts in self assessment, controls catalogue and audit gap closure.

Finally, the audited “Financial Statements” and recommendations on selection of third party audit organization were reviewed.