Asia Media Group Berhad Annual Report 2014
52
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
(Cont’d)
Internal Audit Function
All Internal Audit activities were conducted by an independent Internal Audit firm – Kloo Point Risk
Management Services Sdn Bhd.
The Internal Audit Function established by the Board, provides independent assurance on the
effectiveness of the Group’s system of internal controls and it is centralized at the Group level and it
reports to the respective Audit Committee of the Group on a quarterly basis or earlier as appropriate.
It undertakes regular and systematic reviews of the system of internal control, risk management and
governance processes to provide reasonable assurance that such system operates satisfactorily and
effectively within the respective subsidiaries as well as across the Group.
The cost involved for AMEDIA internal audit (FYE 2014) is approximately RM10,000.00
Details of the activities of the internal audit function are provided in the Statement of the Audit
Committee.
Key Elements of Internal Controls
The key elements of the Group’s internal control system are described below:
i.
Cleary defined limits of authority, responsibility and accountability have been established through
the relevant terms of reference and organizational structures to enhance the Group’s ability to
achieve its strategies and operational objectives;
ii.
Internal policies and procedures as set out in the Group’s Policies and Procedures covering
various operational and management aspects are regularly updated to address operational
deficiencies and changes of risks;
iii.
All Departments are required to prepare the annual strategic plan, capital and operating
expenditure budgets to be aligned with the strategic planning and budgeting process of the
Group;
iv.
Major capital expenditure and assets disposals are appraised and approved by the Board as
well as the board of directors of the subsidiaries, wherever applicable;
v.
The Audit Committee reviews the Group’s financial performance and statements which is then
reported to the Board;
vi.
Management meetings are held regularly to identify, discuss and resolve strategic, operational,
financial and key management issues; and
vii. Sufficient physical safeguards over major assets are in place to protect the assets of the Group
against calamities and / or theft that may result in material losses to the Group.
