On Nov. 26^th, FREP 20^th meeting of the first term Board of Audit Committee (BAC )was held at Fulian Building (Quan Zhou). The BAC Chairman - Mr. Warren Wilder, the BAC members - Mr. Chen Xiaobo, Mr. Xu Jianping and Mr. Scott Sullivan and the board of supervisor - Mr. Yang Hongbin attended the meeting as well.

Ms. Liu Cuixia, the Chief Auditor reported audit engagements completed since last BAC meeting and FREP policy violations, Finance GM, Mr. Joe Francis reported 2015 business control plan update, control training, preparation for 2016 Shareholders’ Joint Audit and etc.

The Committee recognized the work performed by Internal Auditing (IA), and believed that IA had done an excellent job in assisting the management to identify control weaknesses. In addition, it was encouraged that IA make more contributions to the improvement of FREP control environment by integrating all forces in terms of Shareholders, external auditors, internal control group and disciplinary and supervisory department at the meeting. The Supervisor, Mr. Yang Hongbin put forward specific requirements for the next step work of BAC in combination of the present situation of ruling the country by law and corruption cases occurred in Sinopec and PetroChina.

BAC members acknowledged the efforts made by the company’s management to close audit gaps. Also, the management was required to pay high attention to issues identified by IA, and to further supervise items not in compliance with laws/regulations and dishonest suppliers selected in FREP suppliers network at the meeting, so as to ensure legal, efficient and smooth business operation from FREP internal control system.

Eventually, the committee reviewed and approved the “2016 Internal Audit Plan”.   (Xu Juan)