NANYANG PRESS HOLDINGS BERHAD
STATEMENT ON INTERNAL CONTROL
The Board has overall responsibility for internal control, including risk management practices, and sets appropriate policies having regard to the objectives of the Group. Executive management has the responsibility for the identification, evaluation and management of risks and for the implementation and maintenance of control systems in accordance with the Board’s policies.
The system of the internal control is designed to provide the Board with reasonable assurance regarding the maintenance of proper accounting records, the reliability of the financial information and that Group assets are safeguarded. Such a system is designed to manage rather than to eliminate the risk of failure to achieve business objectives and only provide reasonable and not absolute assurance against material misstatement or loss.
The Board through the Audit Committee is assisted by the Internal Audit Department which carries out regular and systematic review of the systems of internal control of the Group and also the extent of compliance with the Group’s operating policies and procedures.
The Group’s external auditors contribute a further independent perspective on certain aspects of the internal financial control system arising from their work and annual report of their findings to the Audit Committee.
The Board through the Audit Committee ensures that the whole management process provides adequate control mechanisms over all major risks to the Group.
The framework and key processes that the Board has established in reviewing the adequacy and the integrity of the system of internal control are as follows: -
Control Environment There is a clearly defined organizational structure in which levels of authority and accountability are well defined.
The Group’s business operates within a framework of procedures laid down in manuals and the Group’s personnel are required to comply with these procedures as relevant to their functions and responsibilities. Financial reporting follows generally accepted accounting practice.
Identification and Evaluation of Risks There is an ongoing process for identifying and reviewing the principal risks affecting the Group’s business and evaluating their financial implications.
The management with feedback from Group’s Internal Audit Department has established a risk register, which identifies key risks, their potential financial impact, and the likelihood of those risks occurring as
well as the control measures to manage those risks.
Financial Control There is comprehensive planning system with annual plans approved by the Board. Activities and results are reported against these plans on both monthly and quarterly basis, in sufficient detail to allow the Directors and the senior management to monitor the financial and non-financial key performance indicators, business activities, risks and progress towards objectives.