Singapore Airlines 2012 Annual Report Download - page 50

048 SINGAPORE AIRLINES
Corporate Governance Report
For the period 1 April 2011 to 31 March 2012
(g) Others
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. The AC meets
with the internal and external auditors without the presence of non-audit Management every quarter.
Internal Controls and Internal Audit (Principles 12 and 13)
SIA Internal Audit is an independent department that reports directly to the AC. The department assists the AC and the Board
by performing regular evaluations on the Group’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 Group’s
requirements. SIA Internal Audit is a 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.
In relation to audit activities conducted during the financial year, SIA Internal Audit had unfettered access to the Group’s
documents, records, properties and personnel, as well as the AC.
The Control Self Assessment (CSA) Programme established since financial year 2003-04 provides a framework for Management
to obtain assurance on the state of internal controls. The CSA Programme requires operating departments’ management to
review and report annually on the adequacy of their respective units’ control environment to the AC. Internal Audit performed
independent and random reviews during the year to validate the results of these self assessments.
A dedicated Risk Management Department looks into and manages the Group’s risk management policies. The Risk Management
Report can be found on pages 36 to 38 of this Report.
Based on the internal controls established and maintained by the Group, work performed by the internal and external auditors,
and reviews performed by Management and various Board Committees, the Board, with the concurrence of the AC, is of the
opinion that the Group’s internal controls were adequate as at 31 March 2012 to address financial, operational and compliance
risks, which the Group considers relevant and material to its operations.
The Board notes that the system of internal controls provides reasonable, but not absolute, assurance that the Group will not
be affected by any event that could be reasonably foreseen as it strives to achieve its business objectives. In this regard, the
Board also notes that no system can provide absolute assurance against the occurrence of material errors, poor judgement in
decision-making, human error, fraud or other irregularities.