The Audit Committee provides oversight to external and internal auditors.  The role and responsibilities of the Audit Committee are clearly defined in the Audit Committee Charter discussed under the section on board committees.  The internal audit function is governed by a separate Internal Audit Charter.  

Independent Public Accountants
The principal accountants and external auditors of the Company is the accounting firm of Sycip, Gorres, Velayo & Company (SGV & Co.).    Ms. Lucy L. Chan is the Partner In-charge beginning 2007.

The Audit Committee is empowered to independently review the integrity of the Company's financial reporting and oversees the independence of the external auditors.

The Audit Committee is responsible for checking 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 the external auditors and the setting of appropriate audit fees.

Over the past two years, CHI  paid or accrued the following billed fees, including VAT, to its external auditors, SGV & Co., who was engaged to audit the Company's annual financial statements. 

Internal Audit
The Internal Audit Department provides independent and objective assurance and consulting 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.  The Internal Audit team is composed of audit practitioners (Certified Public Accountants and a Master in Management) with varied internal and external audit experience.  The department reports to the Audit Committee of the Board of Directors, and likewise assists the Audit Committee in carrying out its duties and responsibilities as provided for in the Company's Manual of Corporate Governance.

Annual audit plans, status updates and accomplishment reports are submitted by the department to the Audit Committee for review and approval.  Regular audits of business and support groups are conducted in accordance with the approved audit plan.  Special audits are also undertaken when necessary.  The department also heads a cross-functional team of Quality, Environment, Health and Safety Management System (QEHS MS) auditors.  QEHS MS internal audits are conducted at least once a year and in accordance with the QEHS MS annual audit program.
With the company's commitment to comply with the Manual of Corporate Governance, the Internal Audit Department conducted an internal Quality Assessment Review (QAR) in 2007.  This is in preparation for the conduct of an external QAR, a requirement for all Audit Departments of publicly listed corporations which is to be done once every 5 years.  The QAR aims to assess the department's (1) compliance to the audit charter and the International Standards for the Professional Practice of Internal Auditing (ISPPIA), (2) effectiveness and efficiency, and (3) value adding services to its stakeholders and the organization.    After the internal QAR, the Audit Committee approved the conduct of an external QAR by the Institute of Internal Auditors – Philippines to be done in 2008.  Results of the internal and external QAR will be used to continually improve the services of the department.

Compliance Officer
Francis O. Monera, who is the company's President, is the Compliance Officer designated by the Chairman of the Board to ensure adherence to sound corporate governance principles and best practices. 
The responsibilities of the Compliance Officer include identifying, monitoring, and controlling compliance risks; operationalizing and monitoring compliance with the provisions and requirements of the Manual of Corporate Governance; and issuing a yearly certification on the extent of the company's  compliance with the said Manual.
 In 2007, the Compliance Officer also submitted the 2007 Corporate Governance Scorecard for publicly listed companies, a project of the Institute of Corporate Directors in collaboration with the Philippine Stock Exchange (PSE) and the Securities and Exchange Commissions (SEC).

The Compliance Officer initiated a formal performance assessment for each member of the Board of Directors for their performance for the year 2007 in order to assess the level of the board's compliance with leading practices and principles on good corporate governance, both as an individual member and as a board's collective governing role.  This is a formal self-rating system that takes into account factors such as independence, experience, judgment, knowledge, time commitment and team work, and identifies clear areas for improvement.