Singapore Airlines 2015 Annual Report Download - page 72

Accountability and Audit (Principle 10)
The Board, through its announcements of quarterly and full-
year results, aims to provide shareholders with a balanced and
understandable assessment of the Company’s performance
and prospects. Management provides the Board with monthly
management accounts for the Board’s review.
The Company has clear policies and guidelines for dealings in
securities by Directors and employees. The Company imposes
a trading embargo on its Directors and employees from
trading in its securities for the period of two weeks prior to the
announcement of quarterly results, and a period of one month
prior to the announcement of year-end results. In addition,
Directors and employees are cautioned to observe the insider
trading laws at all times, and to avoid dealing in the Company’s
securities for short-term considerations.
Risk Management and Internal Controls (Principle 11)
A dedicated Risk Management Department looks into and
manages the Group’s risk management policies. The Risk
Management Report can be found on page 62.
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 the current assessment
and outlook of the various risk factors.
The Board had received assurance from the CEO and Senior
Vice President Finance on the adequacy and eectiveness of
the Company’s risk management and internal control systems,
and that the financial records have been properly maintained
and the financial statements give a true and fair view of the
Company’s operations and finances.
Audit Committee (Principle 12)
The AC’s activities for FY2014/15, 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 The
Singapore Exchange Securities Trading Limited (“SGX-ST”)
for recommendation to the Board for approval. The review
focused on changes in accounting policies and practices,
major judgemental and risk areas, significant adjustments
resulting from the audit, the going concern assumption,
compliance with accounting standards, compliance with
SGX-ST and other legal requirements. The AC keeps itself
apprised of changes in accounting policies and guidelines
through scheduled regular updates by the external auditor,
of such, in meeting agendas.
(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
auditor, 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.
During the year, the AC reviewed proposals from several
reputable audit firms (including the incumbent auditor) and
made a recommendation to the Board for its proposal to
shareholders. The AC nominated KPMG LLP as auditor for
the financial year April 2015 – March 2016, and KPMG LLP
had expressed their willingness to accept the appointment.
The proposal for a new auditor resulted from an internal
corporate governance process to review its auditor
arrangements every five years.
The Company has complied with Rules 712 and 715 of the
SGX-ST Listing Manual in relation to the engagement of
its auditor.
(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 suiciency of
the internal audit function.
During the year, the AC commissioned an External Quality
Assessment Review of the Internal Audit function and its
activities in line with the Standards for the Professional
Practice of Internal Auditing set up by the Institute of
Internal Auditors.
(d) Risk Management
The AC reviewed the adequacy and eectiveness of the
Corporate
Governance Report
70 GOVERNANCE | Corporate Governance Report |