GOVERNANCE


Audit and Accountability

External Audit

We have established appropriate standards for the selection of an external auditor, and exercise effective oversight on the process to strengthen the external auditor’s independence and enhance audit quality.

Following our Revised Manual of Corporate Governance, the external auditor position rotates every five (5) years or earlier, or the handling partner is replaced within the said time period.

 

Independent Public Accounts

SGV & Co. is the principal accountant and external auditor of CHI, with Dolmar C. Montañez as the partner-incharge for the 2017 audit year.

The Audit Committee is empowered to independently review the integrity of financial reporting and oversee the independence of external auditors. The Committee, in its oversight function, is likewise responsible for reviewing all financial reports for compliance with the internal financial management handbook and pertinent accounting standards, including regulatory requirements. It also recommends to the Board and stockholders the appointment of external auditors and the setting of appropriate audit fees.

Audit and Audit Related Fees

Our company and its various subsidiaries and affiliates paid SGV the following fees in the past three years:

Audit Year Audit and Audit Related Fees Other Fees
2017 1,488 706
2016 1,079 466
2015 1.032 369

Figures are in thousand pesos and are exclusive of VAT and out-of-pocket expenses.

 

Internal Audit

The Internal Audit Department (IAD) is an independent unit which reports to the Audit Committee. Through this committee, IAD assists the Board in the discharge of its duties and responsibilities as provided for in the July 2014 Revised Code of Corporate Governance.

The department provides independent and objective assurance and consultancy services to the company with the objective of adding value and assisting the organization in accomplishing its objectives through effective control, risk management, and governance processes.

 

Risk-based Audit Approach

IAD conducts its audits in compliance with the International Standards for the Professional Practice of Internal Auditing (ISPPIA). An external quality assurance review, conducted in 2014 by Punongbayan & Araullo, concluded that the company’s internal audit activities generally conformed with the ISPPIA as issued by the Institute of Internal Auditors. An external quality assurance review is conducted every five years.

In 2017, IAD activities were executed in accordance with the risk-based and process-focused approach. Regular audits of the key processes of the company’s business and corporate service groups were conducted in accordance with an approved Internal Audit Plan, and special audits were undertaken as necessary.

Jennifer G. Sia serves as the company’s Internal Audit Manager

The Internal Audit Activity is governed by its Charter:
Revised Internal Audit Activity Charter-2017

 

Internal Control and Compliance System Attestation

The Company’s Chief Executive Officer and Chief Audit Executive attest in writing, at least annually, that a sound internal audit, control and compliance system is in place and working effectively.

 

Please see below the annual attestation:

Internal Control and Compliance System Attestation