Singapore Airlines 2005 Annual Report Download - page 40

38 SIA Annual Report 04/05
The ARC has undertaken a review of the fees and expenses paid to the auditors, including fees paid for non-audit
services, during the year and is of the opinion that the auditor's independence has not been compromised.
In the opinion of the Directors, the Company complies with the Code of Corporate Governance guidelines on Audit
Committees.
Internal Controls; Internal Audit (Principles 12 and 13)
The Internal Audit Department (IAD) is an independent function that reports directly to the Audit & Risk Committee.
The IAD assists the Committee and the Board by performing regular evaluations on the Company'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 Company's requirements. The Internal Audit Department
will meet or exceed the Standards for the Professional Practice of Internal Auditing set by The Institute of Internal
Auditors.
It is the opinion of the Board that, in the absence of evidence to the contrary, the system of internal controls maintained
by the Management and in place throughout the financial year 2004-05, provides reasonable, but not absolute,
assurance against material financial misstatements or loss, and include the safeguarding of assets, the maintenance
of proper accounting records, the reliability of financial information, compliance with appropriate legislation, regulations
and best practices, and the identification and containment of financial, operational and compliance risks. The Board
notes that all internal control systems contain inherent limitations and no system of internal controls could provide
absolute assurance against the occurrence of material errors, poor judgement in decision-making, human error, losses,
fraud or other irregularities.
A dedicated Risk Management Department looks into and manages the Company's risk management policies. The
Risk Management Report can be found in page 31 of this Report.
Communication with Shareholders (Principles 14 and 15)
The Company believes in prompt disclosure of pertinent information. It values dialogue with both retail and institutional
shareholders, and holds media briefings when announcing half-yearly and year-end results. The proceedings are
concurrently broadcast live via webcast. Media briefings are also held as and when necessary. Additionally, all financial
results as well as price-sensitive information are released through various media which includes press releases and
SGXNET releases posted on the Company's website, at www.singaporeair.com. The Company's Investor Relations
Department meets with key institutional investors on a regular basis, as well as answers queries from shareholders
from time to time.
The Board members always endeavour to attend shareholder meetings where shareholders are given the opportunity
to raise questions and clarify issues they may have relating to the resolutions to be passed, with the Board. The
Chairmen of the Audit & Risk, Board Finance, Board Compensation & Organisation, Nominating, Safety and Reliability,
and Board Labour Relation Committees, or members of the respective committees standing in for them, as well as
the external auditors, would be present and available to address questions at these meetings.
Corporate Governance Report
For the period 1 April 2004 to 31 March 2005