Singapore Airlines 2014 Annual Report Download - page 60

(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.
(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 Audit (Principle 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 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 FY2003/04 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.
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 and effective as at 31 March 2014 to address financial, operational, information
technology 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.
CORPORATE GOVERNANCE REPORT
058
SINGAPORE AIRLINES