cover rationale - ChartNexus

Other Key Elements (CONTINUED)
• regular and comprehensive information provided to management, covering financial
performance and key performance indicators, such as staff utilization and cash flow
performance
• regular internal audit visits which provide independent assurance on the effectiveness of
the Group’s system of internal controls and advising management on areas for further
improvement
• regular visits to operating units by members of the Board and senior management
The Board believes that the development of the system of internal controls is an ongoing
process and has taken steps throughout the year to improve its internal control system and
will continue to do so.
Internal Audit
The Group’s internal audit function undertakes regular reviews of the Group’s operations and
their system of internal controls. It provides continuous improvement to the controls and risk
management procedures. Internal audit findings are discussed at management level and
actions are agreed in response to the internal audit’s recommendations. The status of
implementation of the agreed actions are followed up by the internal audit to ensure that
satisfactory control is maintained. The Audit Committee reviews all internal audit findings and
management responses and the effectiveness of the risk management process. Significant risk
issues are referred to the Board for consideration.
The Board reviews the minutes of the Audit Committee meetings.
Associated Companies
Representatives from the company are appointed to the board of directors of associated
companies and attend board meetings. For active associated companies, key financial
information of these companies is reviewed and significant risks are reported to MRCB Board.
Laporan Tahunan 2002 Annual Report
STATEMENT OF CORPORATE GOVERNANCE (CONTINUED)
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