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Annual Report 2016
ASIA MEDIA GROUP Berhad
41
Statement on Risk Management and Internal Control
(continued)
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.
Details of the activities of the internal audit function are provided in the Statement of theAudit 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.
Conclusion
The Board is of the view that the Group’s risk management and internal control systems is in place
and is adequate and sufficient to provide reasonable assurance that the risks faced by the Group are
under control and have not resulted in material losses incurred by the Group for the financial year
ended 31 December 2016. The Board and the Management will continue to take necessary measures
and ongoing commitment to strengthen and improve its internal control environment and processes.
The above Statement on Risk Management & Internal Control is made in accordance with the resolution
of the Board dated 25 April 2016.
Review of the Statement by External Auditors
The External Auditors have, in accordance with the Recommended Practice Guide 5 issued by the
Malaysian Institute of Accountants, reviewed the Statement as required by paragraph 15.23 of the
Main Market Listing Requirements of Bursa Securities, for inclusion in the Company’s Annual Report
for the financial year ended 31 December 2016.
Based on their review, the auditors have reported to the Board that nothing has come to their attention
that causes them to believe that the Statement is inconsistent with their understanding of the process
adopted by the Board in reviewing and assessing the integrity and adequacy of the internal controls
of the Group.