Cathay Pacific 2002 Annual Report Download - page 30

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Cathay Pacific Airways Limited Annual Report 2002 27
INTERNAL AUDIT
The Internal Audit Department provides an independent review of the adequacy and effectiveness of the internal
control system. The audit plan is discussed and agreed every year with the Audit Committee. The Internal Audit
Manager has direct access to the Audit Committee. Audit reports are sent to the Director and Chief Operating
Officer, the Finance Director, external auditors and the relevant management of the auditee department. A summary
of major audit findings is reported quarterly to the Board and reviewed by the Audit Committee.
EXTERNAL AUDITORS
The external auditors are primarily responsible for auditing and reporting on the annual financial statements. In 2002
the total remuneration paid to the external auditors was HK$8 million being HK$6 million for audit and HK$2 million
for taxation advice.
AIRLINE SAFETY REVIEW COMMITTEE
The Airline Safety Review Committee meets monthly to review the Company’s exposure to operational risk. It reviews
the work of the Cabin Safety Review Committee, the Operational Ramp Safety Committee and the Engineering
Mandatory Occurrence Report Meeting. It is chaired by the Head of Corporate Safety and comprises Directors and
senior management of all operational departments as well as senior management from the ground handling company,
Hong Kong Airport Services Limited and the aircraft maintenance company, Hong Kong Aircraft Engineering
Company Limited.
CODE OF BEST PRACTICE
The Company has complied throughout the year with the Code of Best Practice as set out in the Listing Rules of the
Stock Exchange.
Corporate Governance