Singapore Airlines 2010 Annual Report Download - page 42

SINGAPORE AIRLINES
040
corporate governance report
For the period 1 April 2009 to 31 March 2010
The AC has full access to and co-operation of Management. The AC also has full discretion to invite any Director or
executive officer to attend its meetings, and has been given adequate resources to discharge its functions. During the
year, the AC met with the internal and external auditors without the presence of Management.
The AC has undertaken a review of the fees and expenses paid to the external 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.
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, 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 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 financial year 2009-10, 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, 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 pages 29 to 30.
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 briefings when announcing half-yearly and year-end results. Full transcript of the proceedings are made available
on SGXNET and our Company website at www.singaporeair.com/investor.
Additionally, all financial 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 office.