Annual Report 2023

147 2023 Annual Report Transport International Holdings Limited Internal Audit Function The Internal Audit Department plays an important role in the assessment of the effectiveness of the risk management and internal control systems. It is responsible for providing the Audit and Risk Management Committee and the Senior Management with independent and objective assurance that the internal control systems of the Group are effective in achieving their objectives, and that any risks and internal control weaknesses have been adequately addressed. The Internal Audit Department holds a group- wide function and covers both franchised and non-franchised operations of the Group. The Head of the Internal Audit Department reports directly to the Audit and Risk Management Committee and the Managing Director. The Internal Audit Department conducts risk-based internal audit reviews in accordance with the International Standards for the Professional Practice of Internal Auditing. All staff in the Internal Audit Department, including the Head of Internal Audit Department, are required to declare their independence every year. In 2023, the functions performed by the Internal Audit Department included, among others: Conducting compliance reviews of relevant laws and regulations applicable to the Group’s business; Carrying out operational reviews and surprise checks of major internal control processes in respect of both franchised and non-franchised businesses; Performing special reviews and investigations at the request of the Group’s management; and Assisting operations in carrying out Internal Quality Audits (“IQA”) in accordance with ISO requirements. Based on the report of the Internal Audit Department and the report of the Company Secretary on the Group’s whistleblowing policy, the Audit and Risk Management Committee has concluded that the Group continues to operate in an effective control environment with a control system that adequately monitors and corrects non-compliance in significant areas. Following the Audit and Risk Management Committee’s annual review of the Group’s internal control systems, the Board is satisfied that the Group complied with the Code Provisions on internal controls in 2023. Control Practices for Handling and Disseminating Price-sensitive and/or Inside Information The Company is fully aware of its obligations under the Listing Rules and the Securities and Futures Ordinance. A suite of procedures and internal control measures are in place to preserve the confidentiality of price-sensitive and/or inside information relating to the Group. All members of the Board, Senior Management and nominated executives, who are likely to have access to price-sensitive and/or inside information because of their office or employment in the Company or a subsidiary, are bound by the Model Code for Securities Transactions by the Directors of Listed Issuers under the Listing Rules. In addition, every employee is required to follow the guidelines of the Code of Conduct and the Staff Handbook to keep unpublished price-sensitive and/or inside information strictly confidential.