Annual Report - QuamIR

Corporate Governance Report (Continued)
Internal Controls
The Group has had in place an integrated framework of internal controls
which is consistent with the COSO (the Committee of Sponsoring
Organisations of the Treadway Commission) framework. Under the
framework, the management is primarily responsible for the design,
implementation and maintenance of internal controls to manage risks while
the Board and its audit committee oversee the actions of the management
and monitor the effectiveness of the controls that have been put in place. The
framework and activities taken are illustrated below:
COSO (the Committee of
Sponsoring Organisations of the Treadway
Commission)
Control Environment
Risk awareness and control consciousness are built into the culture of
the Group.
Channels to communicate the Company’s commitment to integrity and
high ethical standards to the staff are established.
Organisation chart, limits of authority and responsibility are set and
communicated to staff concerned.
Risk Assessment
Identification, evaluation and assessment of the key risks affecting the
achievement of the Group’s objectives are conducted from time to time,
forming the basis for determining control activities.
Control Activities
• Policies and procedures for ensuring management directives are carried
out.
•
• Control activities include authorizations, approvals, performance
reviews, segregation of duties, asset security, access control,
documentation and records, etc.
Information and Communication
Pertinent information is identified, captured and provided to the right
person in a timely manner.
Channels of communication across the Group and with external parties.
Monitoring
Onging assessment of control system’s performance.
Management and supervisory activities.
Internal audit activities.
Effectiveness
and efficiency of
operations
Reliability of
financial reporting
Compliance with
applicable laws
and regulations
•
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