Common use of External Audit Clause in Contracts

External Audit. The Board and management need to ensure the statutory auditor is both independent and seen to be independent. The purpose of an independent statutory audit is to provide shareholders and investors with reliable and clear financial reports on which to base investment decisions. The Audit and Risk Committee's external audit responsibilities include: (i) making recommendations to the Board on the appointment, remuneration and monitoring of the performance and independence of the external auditor; (ii) ensuring any suggestions by management that the auditor needs to be replaced or that the audit needs to be put out to tender are referred to and examined carefully by the Audit and Risk Committee with it reporting to the Board on its examination before any decision is made by the Board; (iii) reviewing the external auditor’s fees and being satisfied that an effective, comprehensive and complete audit can be conducted for the set fee; (iv) at the start of each audit, agreeing on the terms of the engagement with the external auditor; (v) inviting the external auditor to attend Audit and Risk Committee meetings to, at least, review the audit plan, discuss audit results and consider the implications of the external audit findings for the control environment; (vi) together with the external auditor, reviewing the scope of the external audit (particularly the identified risk areas) and any additional agreed procedures on a regular and timely basis; (vii) enquiring of the auditor if there have been any significant disagreements with management irrespective of whether or not they have been resolved; (viii) monitoring and critiquing management’s responsiveness to the external auditor’s findings and recommendations; (ix) reviewing all representation letters signed by management and ensuring the information provided is complete and appropriate; (x) providing the opportunity for the Audit and Risk Committee members to meet with the external auditors without management personnel being present at least once a year; (xi) reviewing the external auditor’s independence based on the external auditor’s relationships and services with the Company and other organisations that may impair or appear to impair the external auditor’s independence; and (xii) requesting the external auditor to attend the AGM of the Company to answer any audit related questions from shareholders.

External Audit. The Board and management need to ensure the statutory auditor is both independent and seen to be independent. The purpose of an independent statutory audit is to provide shareholders and investors with reliable and clear financial reports on which to base investment decisions. The Audit and Risk Committee's external audit responsibilities include: (i) making recommendations to the Board on the appointment, remuneration and monitoring of the performance and independence of the external auditor; (ii) ensuring any suggestions by management that the auditor needs to be replaced or that the audit needs to be put out to tender are referred to and examined carefully by the Audit and Risk Committee with it reporting to the Board on its examination before any decision is made by the Board; (iii) reviewing the external auditor’s fees fees, including fee payable to the auditor for audit and non-audit work and being satisfied that an effective, comprehensive and complete audit can be conducted for the set fee; (iv) at the start of each audit, agreeing on the terms of the engagement with the external auditor; (v) inviting the external auditor to attend Audit and Risk Committee meetings to, at least, review the audit plan, discuss audit results and consider the implications of the external audit findings for the control environment; (vi) together with the external auditor, reviewing the scope of the external audit (particularly the identified risk areas) and any additional agreed procedures on a regular and timely basis; (vii) enquiring of the auditor if there have been any significant disagreements with management irrespective of whether or not they have been resolved; (viii) monitoring and critiquing management’s responsiveness to the external auditor’s findings and recommendations; (ix) reviewing all representation letters signed by management and ensuring the information provided is complete and appropriate; (x) providing the opportunity for the Audit and Risk Committee members to meet with the external auditors without management personnel being present at least once a year; (xi) reviewing the external auditor’s independence based on the external auditor’s relationships and services with the Company and other organisations that may impair or appear to impair the external auditor’s independence; and (xii) requesting the external auditor to attend the AGM of the Company to answer any audit related questions from shareholders.

External Audit. The Board ARCCs conduct an assessment of the external auditors of FHT, and management need recommends its appointment, re-appointment and removal to ensure the statutory auditor is both independent and seen to be independentBoard. The purpose of an independent statutory audit assessment is to provide shareholders and investors with reliable and clear financial reports based on which to base investment decisions. The Audit and Risk Committee's external audit responsibilities include: (i) making recommendations to the Board on the appointment, remuneration and monitoring of factors such as the performance and quality of its audit, the cost effectiveness and the independence and objectivity of the external auditor; auditors. At the annual general meeting (ii“AGM”) ensuring any suggestions held on 14 January 2020, KPMG LLP was re-appointed by management that Stapled Securityholders as the auditor needs external auditors of FHT for FY2020. Pursuant to the requirements of the SGX-ST, an audit partner may only be replaced or that in charge of a maximum of five consecutive annual audits and may then return after two years. The current KPMG LLP audit partner for the Group was appointed at the AGM held on 9 December 2015. There will be a new audit needs to be put out to tender are referred to partner in charge for the financial year ending September 2021. During FY2020, the ARCCs conducted a review of the scope, quality, results and examined carefully performance of audit by the Audit external auditors of FHT and Risk Committee with it reporting to its cost effectiveness, as well as the Board on its examination before any decision is made by the Board; (iii) reviewing the external auditor’s fees independence and being satisfied that an effective, comprehensive and complete audit can be conducted for the set fee; (iv) at the start of each audit, agreeing on the terms of the engagement with the external auditor; (v) inviting the external auditor to attend Audit and Risk Committee meetings to, at least, review the audit plan, discuss audit results and consider the implications objectivity of the external auditors. They also reviewed all non-audit findings for the control environment; (vi) together with services provided by the external auditorauditors during the financial year, reviewing and the scope aggregate amount of the external audit (particularly the identified risk areas) fees paid and any additional agreed procedures on a regular payable to them for such services. Details of fees paid and timely basis; (vii) enquiring of the auditor if there have been any significant disagreements with management irrespective of whether or not they have been resolved; (viii) monitoring and critiquing management’s responsiveness payable to the external auditor’s findings auditors in respect of audit and recommendations; (ix) reviewing non-audit services as at 30 September 2020 are set out in the table below: For audit and audit-related services 0.43 For non-audit services 0.31 Total 0.74 The ARCCs have conducted a review of all representation letters signed non-audit services provided by management KPMG LLP during the financial year. The ARCCs are satisfied that given the nature and ensuring extent of non-audit services provided and the information provided fees for such services, neither the independence nor the objectivity of KPMG LLP is complete put at risk. KPMG LLP has attended the ARCCs meeting held every quarter for FY2020, and where appropriate; (x) providing , has met with the opportunity ARCCs without the presence of Management to discuss their findings, if any. Each of the REIT Manager and the Trustee-Manager confirms that FH-REIT and FH-BT respectively has complied with Rule 712 of the SGX-ST Listing Manual which requires, amongst others, that a suitable auditing firm should be appointed by the Group having regard to certain factors. Each of FH-REIT and FH-BT has also complied with Rule 715 of the SGX-ST Listing Manual which requires that the same auditing firm of the Group based in Singapore audits its Singapore-incorporated subsidiaries and significant associated companies, and that a suitable auditing firm be engaged for its significant foreign- incorporated subsidiaries and associated companies. In the Audit and Risk Committee members to meet with review of the financial statements of FHT for FY2020, the ARCCs discussed the following key audit matters identified by the external auditors without management personnel being present at least once a year; (xi) reviewing the external auditor’s independence based on the external auditor’s relationships and services with the Company and other organisations that may impair or appear to impair the external auditor’s independence; and (xii) requesting the external auditor to attend the AGM of the Company to answer any audit related questions from shareholders.Management:

External Audit. 3.5.1 The Board Committee shall consider and management need recommend to ensure the statutory auditor is both independent and seen to be independent. The purpose of an independent statutory audit is to provide shareholders and investors with reliable and clear financial reports on which to base investment decisions. The Audit and Risk Committee's external audit responsibilities includeBoard: (ia) making recommendations the Auditor to be nominated for the Board on purpose of preparing or issuing an auditor’s report or performing other audit, review or attest services for the appointment, remuneration and monitoring Corporation; and (b) the compensation of the performance Auditor. 3.5.2 The Committee shall oversee the Corporation’s relationship with the Auditor including (but not limited to): (a) approval of their remuneration, including fees for audit or non-audit services and independence ensuring that the level of the external auditorfees is appropriate to enable an adequate audit to be conducted; (iib) ensuring approval of their terms of engagement, including any suggestions by management that the auditor needs to be replaced or that the audit needs to be put out to tender are referred to and examined carefully by the Audit and Risk Committee with it reporting to the Board on its examination before any decision is made by the Board; (iii) reviewing the external auditor’s fees and being satisfied that an effective, comprehensive and complete audit can be conducted for the set fee; (iv) engagement letter issued at the start of each audit, agreeing on the terms of the engagement with the external auditor; (v) inviting the external auditor to attend Audit audit and Risk Committee meetings to, at least, review the audit plan, discuss audit results and consider the implications of the external audit findings for the control environment; (vi) together with the external auditor, reviewing the scope of the external audit (particularly the identified risk areas) and any additional agreed procedures on a regular and timely basisaudit; (viic) enquiring assessing annually their independence and objectivity taking into account relevant professional and regulatory requirements and the relationship with the Auditor as a whole, including the provision of the auditor if there have been any significant disagreements with management irrespective of whether or not they have been resolvednon-audit services; (viiid) satisfying itself that there are no relationships (such as family, employment, investment, financial or business) between the Auditor and the Corporation or KP Tissue (other than in the ordinary course of business) or any other conflicts of interest; (e) reviewing and approving the Corporation’s policy on the employment of current and former partners and employees of the Auditor; (f) ensuring receipt, at least annually, from the external auditor of a formal written statement delineating all relationships between the Auditor and the Corporation or KP Tissue, including non- audit services provided to the Corporation or KP Tissue; (g) monitoring the Auditor’s compliance with relevant ethical and critiquing management’s responsiveness professional guidance on the rotation of audit partners, the level of fees paid by the Corporation compared to the overall fee income of the firm, office and partner and other related requirements; (h) assessing annually the qualifications, expertise and resources of the Auditor and the effectiveness of the audit process, which shall include a report from the Auditor on their own internal quality procedures; (i) overseeing the work of the Auditor, including the resolution of disagreements between Management and the Auditor; (j) meeting regularly with the Auditor, including once at the planning stage before the audit and once after the audit at the reporting stage. The Committee shall meet the Auditor at least once a year, without Management being present, to discuss their mandate and any issues arising from the audit; (k) reviewing and approving the annual external auditoraudit plan and ensuring that it is consistent with the scope of the audit engagement; (l) reviewing the findings of the audit with the Auditor; (m) reviewing any representation letter(s) requested by the Auditor before they are signed by the Management; (n) reviewing the Management letter and executive Management’s response to the Auditor’s findings and recommendations; (ixo) reviewing all representation letters signed by management and ensuring giving consideration to the information provided is complete and appropriaterotation of the audit partner on a periodic basis; (xp) providing reviewing any related findings and recommendations of the opportunity for Auditor together with Management’s responses including the Audit and Risk Committee members to meet with the external auditors without management personnel being present at least once a yearstatus of previous recommendations; (xiq) reviewing any serious difficulties or disputes with Management encountered during the external auditor’s independence based course of the audit, including any restrictions on the external auditorscope of the Auditor’s relationships and services with the Company and other organisations that may impair work or appear access to impair the external auditor’s independencerequired information; and (xiir) requesting reviewing any other matters related to the conduct of the external auditor audit, which are to attend be communicated to the AGM Committee by the Auditor under generally accepted auditing standards. 3.5.3 Unless otherwise permitted by NI 52-110, the Committee must pre-approve any non-audit services to be provided to the Corporation or its subsidiaries by the Auditor. The Committee may delegate to one or more of its independent members authority to pre-approve non-audit services, but no such delegation may be made to Management of the Company Corporation. The pre-approval of non-audit services by any member to answer any audit related questions from shareholderswhom authority has been delegated hereunder must be presented to the Committee at its first scheduled meeting following such pre-approval.