Cathay Pacific 2003 Annual Report Download - page 31

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Cathay Pacific Airways Limited Annual Report 2003 29
Corporate Governance
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 2003 the total remuneration paid to the external auditors was HK$8 million, being HK$6 million for audit and
HK$2 million for tax 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, HAECO.
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.