Singapore Airlines 2009 Annual Report Download - page 41

39
Internal Controls and Internal Audit (Principles 12 and 13)
The Internal Audit Department (IAD) is an independent department that reports directly to the Audit Committee.
The IAD assists the Committee and the Board by performing regular evaluations on the Company’s internal controls,
fi nancial and accounting matters, compliance, business and fi nancial risk management policies and procedures,
and ensuring that internal controls are adequate to meet the Company’s requirements. The IAD conforms to all the
Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors.
Additionally, the various Divisions within the Company have developed a Control Self Assessment programme,
where operating departments’ management review and report on the adequacy of their respective units’ control
environment to the AC annually.
It is the opinion of the Board that, in the absence of evidence to the contrary, the system of internal controls
maintained by Management and in place throughout the fi nancial year 2008-09, provides reasonable, but not
absolute, assurance against material fi nancial misstatements or loss, and include the safeguarding of assets, the
maintenance of proper accounting records, the reliability of fi nancial information, compliance with appropriate
legislation, regulations and best practices, and the identifi cation and containment of fi nancial, business 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 judgment 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 on page 29.
Communication with Shareholders (Principles 14 and 15)
The Company believes in prompt disclosure of pertinent information. It values dialogue with shareholders, and
holds analyst and media briefi ngs when announcing half-yearly and year-end results. Full transcripts of the
proceedings are made available on SGXNET and our Company website at www.singaporeair.com/investor.
Additionally, all fi nancial results as well as price sensitive information are released in a timely manner through
various media which include press releases posted on the Company website, and disclosure via SGXNET.
The Investor Relations Department meets with analysts and investors on a regular basis, through investor
conferences and roadshows, as well as ad-hoc meetings and teleconferences in offi ce.
The Company was recognized as the “Most Transparent Company – Transport Storage Communication Category”
by the Securities Investors Association of Singapore (“SIAS”) in 2008, the seventh time since the inception of SIAS
Investors’ Choice Award in 2000. The Company also received the Best Managed Board Award (Silver) and Best
Investor Relations Award (Silver) from the organizers of the Singapore Corporate Awards 2009.
39