Corporate
Governance Report
During 2015, the Audit Committee reviewed the volume and nature of non-audit services provided by the external auditor and
received the requisite information from the external auditor evidencing the latter’s independence. Based on the information, the
Audit Committee is satisfied that the non-audit services provided by the external auditor will not prejudice the independence and
objectivity of the external auditor.
The total fees paid to the external auditor, PwC, are disclosed in the table below:
EXTERNAL AUDITOR FEES FOR FY2015
HK$’000
% OF TOTAL FEES
Total Audit Fees
14,461
89%
Total Non-Audit Fees
1,751
11%
Total Fees Paid
16,212
100%
Based on the Interested Person Transactions Policy, the Audit Committee monitored the procedures established by the Trustee-
Manager to regulate interested person transactions to ensure timely, complete and accurate reporting of these transactions.
The Audit Committee also reviewed the volume and nature of interested person transactions.
HPH Trust has in place a Whistle-blowing Policy where sta
of the Group and any other person may, in confidence, approach the
Audit Committee to raise concerns about possible improprieties in matters of financial reporting or other matters. The Whistle-
blowing Policy is available on our corporate website
).
Internal Audit
Principle 13
The General Manager of the Group’s internal audit function, reporting directly to the Audit Committee, provides independent
assurance as to the existence and e
ectiveness of the risk management activities and controls in the Group’s business operations
worldwide. Using risk assessment methodology and taking into account the dynamics of the Group’s activities, internal audit
derives its yearly audit plan which is reviewed by the Audit Committee, and reassessed during the year as needed to ensure
that adequate resources are deployed and the plan’s objectives are met. Internal audit is responsible for assessing the Group’s
internal control systems, formulating an impartial opinion on the systems, and reporting its findings to the Audit Committee, the
CEO, the CFO and the senior management concerned as well as following up on all reports to ensure that all issues have been
satisfactorily resolved. In addition, a regular dialogue is maintained with the Group’s external auditor so that both are aware of
the significant factors which may a
ect their respective scope of work.
Depending on the nature of business and risk exposure of individual business units, the scope of work performed by the internal
audit function includes financial and operations reviews, the reviews of compliance and information technology controls as well
as risk management system, recurring and surprise audits, fraud investigations and productivity e¢ciency reviews.
Reports from the external auditor on internal controls and relevant financial reporting matters are presented to the General
Manager of the Group’s internal audit function and, as appropriate, to the CFO and the finance director or financial controller of
the relevant executive management team. These reports are reviewed and the appropriate actions are taken.
The Audit Committee reviews the adequacy and e
ectiveness of the internal audit function annually. The review covers an
assessment on the adequacy, qualifications and experience of its sta
.
Legal and Regulatory
The Legal Department has the responsibility of safeguarding the legal interests of the Group. It is responsible for monitoring
the day-to-day legal a
airs of the Group, including preparing, reviewing and approving all legal and corporate secretarial
documentation of Group companies, working in conjunction with finance, tax, treasury, corporate secretarial and business unit
personnel on the review and co-ordination process, and advising Management of legal and commercial issues of concern.
In addition, the Legal Department is also responsible for overseeing regulatory compliance matters of all Group companies.
It analyses and monitors the regulatory framework within which the Group operates, including reviewing applicable laws
and regulations and preparing and submitting response or filings to relevant regulatory and/or government authorities and
consultations as the case may be. The department also determines and approves the engagement of external legal advisers,
ensuring the requisite professional standards are adhered to as well as most cost e
ective services are rendered.
057
ANNUAL REPORT 2015
HUTCHISON PORT HOLDINGS TRUST
