Singapore Airlines 2010 Annual Report Download - page 41

ANNUAL REPORT 2009/10
039
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 securities by Directors and employees, as recommended by the
SGX-ST’s Best Practices Guide. The Company imposes a trading embargo on its Directors and employees from trading in its
securities for the period of two weeks prior to the announcement of quarterly results; and a period of one month prior to the
announcement of year-end results. In addition, Directors and employees are cautioned to observe the insider trading laws at
all times.
Board Audit Committee Activities (Principle 11)
The AC’s activities for financial year 2009/10, in accordance with its responsibilities and duties under its Charter, included
the following:
(a) Financial Reporting
The AC reviewed the interim and annual financial statements and financial announcements required by SGX-
ST for recommendation to the Board for approval. The review 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 AC 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; and
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 AC 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 independence and resource
sufficiency of the internal audit function.
(d) Risk Management
The AC reviewed the effectiveness of the Company’s material controls, including financial, compliance and risk
management controls, to safeguard shareholders’ investments and the Company’s assets.
(e) Interested Person Transactions
The AC reviewed interested person transactions to ensure compliance with the SGX-ST Listing Manual and the
Shareholders’ Mandate obtained at the last General Meeting.
(f) Whistle-Blowing
The AC is apprised of all cases of whistle-blowing. Cases that are significant are reviewed by the AC for adequacy
and independence of investigative actions and resolution.