Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 38 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (cont’d) Internal Audit Function All Internal Audit activities were conducted by in-house internal audit team. The total costs incurred by the Group for its internal audit function in the financial year ended 31 December 2017 amount to RM23,000.00 approximately. 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. 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.