Singapore Airlines 2012 Annual Report Download - page 49

047ANNUAL REPORT 2011/2012
Corporate Governance Report
For the period 1 April 2011 to 31 March 2012
Board Audit Committee Activities (Principle 11)
The AC’s activities for financial year 2011-12, in accordance with its responsibilities and duties under its Charter, included
the following:
(a) Financial Reporting
The AC reviewed the quarterly 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 judgemental and risk areas, any significant adjustment 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. In assessing independence, the
AC reviewed the fees and expenses paid to the external auditors, including fees paid for non-audit services during the
year. The AC is of the opinion that the auditor’s independence has not been compromised.
In addition, 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.
The Company has complied with Rules 712 and 715 of the SGX-ST Listing Manual in relation to the engagement of
its 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 Group’s material controls, including financial, compliance and risk management
controls, to safeguard shareholders’ investments and the Group’s assets.
Annually, a report is submitted by the Risk Management Department to the Board, which provides a comprehensive
review of the risks faced by the Group. The review includes the identification of risks overseen by the main Board and
its various Board Committees, as well as addresses the current assessment and outlook of the various risk factors.
(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 Annual General Meeting.
(f) Whistle-Blowing
The AC reviewed and was satisfied with the adequacy of the whistle-blowing programme instituted by the Company
through which staff may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other
matters. All whistle-blower reports are reviewed by the AC at its quarterly meetings to ensure independent investigation and
adequate resolution.