Events 2005 - ChartNexus

44
Statement on
Internal Control
Penyata Kawalan Dalaman
To embed the risk management process within the culture of the
Group, the following steps are incorporated in the risk
management process:
Embedding internal control further into the operations of the
business through the installation of a process of risk and
control self-assessment.
Regular updates on risk management from the heads of the
business and supporting functions to the Risk Management
Committee.
Quarterly review by the Audit Committee of the Board on the
adequacy and integrity of the system of internal control and
risk management process.
INTERNAL AUDIT FUNCTION
The Group has an internal audit department, which provides the
Board with much of the assurance it requires regarding the
adequacy and integrity of the system of internal control.
Internal audit independently reviews the risk identification
procedures and control processes, and reports to the Audit
Committee on a quarterly basis. Internal audit also reviews the
internal controls in the key activities of the Group's business and
a detailed annual internal audit plan is presented to the Audit
Committee for approval. Internal audit adopts a risk-based
approach and prepares its audit strategy and plan based on the
risk profiles of the major business functions of the Group.
The Audit Committee reviews the risk monitoring and compliance
procedures to obtain the level of assurance required by the Board.
The Audit Committee presents its findings to the Board on a
quarterly basis or earlier as appropriate.
OTHER KEY ELEMENTS OF INTERNAL CONTROLS
Apart from the above, the other key elements of the Group’s
internal control systems include:
Clearly defined delegation of responsibilities to committees
of the Board and to management including organisation
structures and appropriate authority levels.
Regular and comprehensive information provided to
management for monitoring of performance against
strategic plan, covering all key financial and operational
indicators.
The Group Managing Director/Chief Executive Officer
reviews with the Board significant changes in internal and
external environment, which affects the Group’s risk profile.
Detailed budgeting process requiring all business units to
review budgets periodically, which are discussed and
approved by the Top Management headed by the Group
Managing Director/Chief Executive Officer.
The Group Financial Controller provides the Board with
quarterly financial information. This includes, amongst
others, the monitoring of results against budget, with major
variances being followed up and management action taken,
where necessary.
There were no material losses incurred during the current
financial year as a result of weaknesses in internal control.
Management continues to take measures to strengthen the
control environment.