Annual Report 2023

138 2023 Annual Report Transport International Holdings Limited CORPORATE GOVERNANCE REPORT Audit and Risk Management Committee The Chairman of the Audit and Risk Management Committee is Dr Eric LI Ka Cheung, an Independent Non-executive Director of the Company. He is a Certified Public Accountant who possesses the professional qualifications and accounting expertise prescribed by the Listing Rules. Dr LI and the other members of the Audit and Risk Management Committee have diverse experience in various business and professional fields as set down in the Directors’ biographies on pages 158 to 166 of this Annual Report. None of the members of the Audit and Risk Management Committee is a former or existing partner of the external auditors of the Company. The Audit and Risk Management Committee is responsible for establishing and maintaining an adequate internal control structure, ensuring the quality and integrity of financial statements, nominating independent external auditors, reviewing the adequacy of external audits in respect of cost, scope and performance, and ensuring that an effective system of internal control and risk management is established within the Company. The Audit and Risk Management Committee’s terms of reference are aligned with the recommendations set out in “A Guide for Effective Audit Committees” published by Hong Kong Institute of Certified Public Accountants (“HKICPA”) and are regularly updated with reference to the recommendations of the CG Code of the Listing Rules. The terms of reference are available on the respective websites of the Company and the Stock Exchange. In 2023, the Audit and Risk Management Committee and the Senior Management held three meetings focusing on safety issues and risk management and two meetings with the Company’s external auditors, KPMG, at which the Company’s financial reports, internal control systems and other relevant matters were reviewed and discussed. At the end of these meetings, the external auditors were invited to discuss in private with members of the Audit and Risk Management Committee issues noted during the course of the audit and any other matters they might wish to bring to the attention of the Audit and Risk Management Committee without the presence of the Senior Management. Following each of the two meetings, the Chairman of the Audit and Risk Management Committee submitted a report to the Board of Directors and gave a briefing on all significant issues identified. The major works undertaken by the Audit and Risk Management Committee in the financial year ended 31 December 2023 included: (a) Supervision of the Company’s Financial Reporting Process, and Internal Control and Risk Management Systems Reviewed with the Senior Management the accounting principles and practices adopted by the Group, the financial results of the Company and its major subsidiaries, the accuracy and fairness of the financial statements, and the scope of internal and external audit work; Reviewed the revised accounting standards and any prospective changes thereto, and considered their impact on the financial reporting of the Company and the Group; Reviewed with the external auditors the effectiveness of the audit procedures, their findings concerning the interim and annual financial statements and results announcements, and the Management’s response to such findings; Discussed and reviewed the internal audit reports prepared by the Head of the Internal Audit Department covering, among other things, audit objectives, audit approach, audit work performed and the findings arising therefrom;