Internal Control Statement (cont’d)
Apart from risk management and internal audit, the Group has put in place the following key elements of internal control:
levels of delegated authority;
which is subject to regular reviews and improvement;
and key business indicators, for effective monitoring and decision making; and
credit control, business development and deliberate on operational issues.
Weakness in internal controls that result in material losses
Based on findings in the internal auditors’ report for the financial year ended 31 December 2009, the Board is of the opinion that the general system of internal control is adequate and appeared to be working satisfactorily. A number of minor internal control weaknesses were identified during the year, all of which have been, or are being, addressed by Management. There were no material losses, contingencies or uncertainties incurred during the financial year as a result of weakness in internal control.
The Board is committed to put in more appropriate action plans, to ensure that the internal control system could continuously evolve to support the type of business and size of the operations of the Group.
Pursuant to paragraph 15.23 of the Listing Requirements, the external auditor has reviewed this statement for inclusion in the Annual Report for the financial year ended 31 December 2009 and reported to the Board that nothing has come to their attention that causes them to believe that this Statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy and integrity of the system of internal controls.
The total costs incurred in managing the internal audit function for the financial year ended 31 December 2009 were approximately RM17,515/-.
This statement is issued in accordance with a resolution of the Directors dated 20 April 2010.
Annual Report 2009