Singapore Airlines 2011 Annual Report Download - page 46

CORPORATE GOVERNANCE REPORT
For the period 1 April 2010 to 31 March 2011
SINGAPORE AIRLINES
044
Internal Controls and Internal Audit (Principles 12 and 13)
SIA Internal Audit is an independent department that reports directly to the Audit Committee. The department
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. SIA Internal Audit is a
corporate member of the Singapore chapter of the Institute of Internal Auditors (“IIA”) and meets the Standards
for the Professional Practice of Internal Auditing set by The IIA.
SIA Internal Audit also performs analyses of data and transactions periodically (continuous monitoring) on
selected areas that are more susceptible to fraud risk.
The Control Self Assessment (CSA) Programme established since financial year 2003/2004 provides a
framework for Management to obtain assurance on the state of internal controls. The CSA Programme,
which requires operating departments’ management to review and report annually on the adequacy of their
respective units’ control environment to the AC, was enhanced during the year to promote greater objectivity
and transparency. Internal Audit performed independent and random reviews during the year to validate the
results of these self assessments.
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 2010/2011, provides reasonable, but
not absolute, assurance against material financial misstatements or loss, and includes 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 32 to 33.
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 transcripts 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.