Singapore Airlines 2013 Annual Report Download - page 52

050
SINGAPORE AIRLINES
CORPORATE GOVERNANCE REPORT
Internal Controls and Internal Audit (Principles 12 and 13)
SIA Internal Audit is an independent department that reports directly to the Audit Committee. The department assists the
Committee and the Board by performing regular evaluations on the Group’s internal controls, financial and accounting
matters, compliance, business and financial risk management policies and procedures, and ensuring that internal controls
are adequate to meet the Group’s requirements. SIA Internal Audit is a member of the Singapore Chapter of the Institute of
Internal Auditors (“IIA”) and meets the Standards for the Professional Practice of Internal Auditing set by the IIA.
SIA Internal Audit also performs analyses of data and transactions periodically (continuous monitoring) on selected areas that
are more susceptible to fraud risk.
In relation to audit activities conducted during the financial year, SIA Internal Audit had unfettered access to the Group’s
documents, records, properties and personnel, as well as the AC.
The Control Self Assessment (“CSA”) Programme established since FY2003-04 provides a framework for Management to
obtain assurance on the state of internal controls. The CSA Programme requires operating departments’ management to
review and report annually on the adequacy of their respective units’ control environment to the AC. Internal Audit performed
independent and random reviews during the year to validate the results of these self assessments.
A dedicated Risk Management Department looks into and manages the Group’s risk management policies. The Risk
Management Report can be found on page 38.
The Board had received assurance from the CEO and Senior Vice President Finance on the adequacy and effectiveness of
the Company’s internal control systems, and that the financial records have been properly maintained and the financial
statements give a true and fair view of the Company’s operations and finances.
Based on the internal controls established and maintained by the Group, work performed by the internal and external
auditors, and reviews performed by Management and various Board Committees, the Board, with the concurrence of the AC,
is of the opinion that the Group’s internal controls were adequate as at 31 March 2013 to address financial, operational,
information technology and compliance risks, which the Group considers relevant and material to its operations.
The Board notes that the system of internal controls provides reasonable, but not absolute, assurance that the Group will not
be affected by any event that could be reasonably foreseen as it strives to achieve its business objectives. In this regard, the
Board also notes that no system can provide absolute assurance against the occurrence of material errors, poor judgement
in decision-making, human error, fraud or other irregularities.