The 18^th Session of FREP 1^st Audit Committee was held in Quanzhou Fulian Building on 22^nd October 2014. Mr. Rakkan, Acting Chairman of the Audit Committee and Committee members Mr. Chen Xiaobo, Mr. Lin Li and Mr. Sullivan were present at the meeting.

Madam Liu Cuixia, the Chief Auditor, made a report on the auditing work since last Audit Committee Session and the shareholders’ audit. Mo Ping, the Secretary to the Audit Committee, presented the revision of FREP “Internal Audit Policy”. Mr. Joe Francis, General Manager of Finance Department, reported on the completion of 2014 Controls Plan and the correction status of issues found by shareholders’ audit.

The Audit Committee appreciated and expressed thanks for the efforts made by Internal Audit and believed that Internal Audit introducing the concept of “full coverage” in implementation of audit programs made for comprehensive audit with highlights and depth and had achieved tremendously in the course of assisting administrative departments in identifying the weaknesses in Controls, etc. In addition, the meeting encouraged Internal Audit team to work closely with the management layer to close audit gaps proactively.

The meeting spoke highly of FREP senior management for paying increasingly high attention to audit work and expressed contentment with the overall Controls of FREP. The meeting also recognized the efforts made by the management in close of audit and Controls gaps, in optimization of businesses, and the like. Moreover, the meeting required the management to lay more emphasis on cause analysis to audit findings to prevent recurrence of similar issues, namely, attach greater importance to the prevention of incidents. Audit Committee members hoped the management to intensify legal education for employees.

The meeting deliberated over and approved “Internal Audit Three Years Dynamic Plan (2015-2017)”, “2015 Internal Audit Plan” and the lately revised “Internal Audit Policy”.