Singapore Airlines 2005 Annual Report Download - page 39

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SIA Annual Report 04/05 37
Accountability (Principle 10)
The Board, through its announcements of quarterly and full-year results, aims to provide shareholders with a balanced
and understandable assessment of the Company's performance and prospects. Management provides the Board with
monthly management accounts for the Board's review.
The Company has clear policies and guidelines for dealings in the securities of the Company by Directors and employees,
which are in conformity with the SGX-ST Best Practices Guide. The Company prohibits selected employees from trading
in its securities for the period commencing 2 weeks from announcement of quarterly results; and a period commencing
1 month from the announcement of year-end results.
Audit & Risk Committee (Principle 11)
The Audit & Risk Committee (ARC) comprises of 3 independent members, namely, Ho Kwon Ping (Chairman), Chia
Pei-Yuan and Stephen Lee. Four meetings were held during the course of the year.
The ARC's actions in financial year 2004-05, in accordance with its responsibilities and duties under its Charter, included
the following:
(a) Financial Reporting
The ARC reviewed with Management the interim and annual financial statements and financial announcements
required by SGX-ST before endorsing to the Board for approval. The reviews focused on changes in accounting
policies and practices, major judgmental and risk areas, significant adjustments resulting from the audit, the
going concern assumption, compliance with accounting standards, compliance with SGX-ST and other legal
requirements.
(b) External Audit
The ARC discussed with the external auditor the audit plan, and the report on the audit of the year-end financial
statements; reviewed the external auditor's management letter and Management's responses thereto; reviewed
the external auditor's objectivity and independence from Management and the Company. The appointment of
the external auditor and the audit fee were considered, and recommendations made to the Board on the selection
of the Company's external auditors.
(c) Internal Audit
The ARC reviewed the scope of internal audit work and its audit programmes; reviewed the major findings during
the year and Management's responses thereto; and ensured the adequacy of the internal audit function.
(d) Risk Management
The ARC reviewed with Management, and the internal and external auditors, the effectiveness of the Company's
material controls, including financial, operational and compliance controls, and risk management in safeguarding
shareholders' investments and the Company's assets.
(e) Interested Person Transactions
The ARC reviewed interested person transactions as stipulated in the SGX-ST Listing Manual and the Shareholders'
Mandate obtained at the last Annual General Meeting.
The ARC has full access to and co-operation of Management. The ARC also has full discretion to invite any director
or executive officer to attend the meetings, and has been given adequate resources to discharge its functions.
During the year, the ARC met with the internal and external auditors without the presence of Management.