ENRICHING LIVES EXPANDING HORIZONS - Maxis

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Corporate Governance
INTERNAL CONTROL
STATEMENT
Continued
MONITORING AND REVIEW
The processes that monitor and review the effectiveness of the system of internal controls include:
1. Management Representation to the Board by the Chief Executive Officer on the control environment of the Group,
based on representations made to him by Management on the control environment in their respective areas. Any
exceptions identified are highlighted to the Board.
2. Internal Audit in their quarterly report to the Audit Committee and Senior Management continues to highlight significant
issues and exceptions identified during the course of their review on processes and controls compliance.
3. Defalcation Committee meets and deals regularly on matters pertaining to fraud and unethical practices. All issues arising
from work carried out by the investigation team within the Internal Audit department and Management are channeled to this
committee for deliberation. Appropriate actions are then taken based on the findings.
4. Risk Management reports to the Board on a half-yearly basis through the Audit Committee on the risk profile of the Group
and the progress of action plans to manage and mitigate the risks.
CONCLUSION
For the financial year under review and up to the date of issuance of the financial statements, the Board is satisfied with the
adequacy, integrity and effectiveness of the Group’s system of risk management and internal control. No material losses,
contingencies or uncertainties have arisen from any inadequacy or failure of the Group’s system of internal control that would
require separate disclosure in the Group’s Annual Report.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
As required by paragraph 15.23 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the external auditors
have reviewed this Internal Control Statement. Their review was performed in accordance with Recommended Practice Guide
(RPG) 5: Guidance for Auditors on the Review of Directors’ Statement on Internal Control, issued by the Malaysian Institute of
Accountants. Based on their review, the external auditors have 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 the Board has adopted in the
review of the adequacy and integrity of internal control of the Group. RPG 5 does not require the external auditors to, and they did
not, consider whether this statement covers all risk and controls, or to form an opinion on the effectiveness of the Group’s risk and
control procedures.