Annual Report 2011 (Part I) - Wawasan TKH Holdings Berhad

STATEMENT ON INTERNAL CONTROL
015
INTRODUCTION
Pursuant to paragraph 15.26(b) Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the
Board of Directors of public listed companies is to include in its annual reports a statement about the state of
internal control of the Company prepared in accordance with the “Statement of Internal Control: Guidance for
Directors of Public Listed Companies” issued by the Institute of Internal Auditors Malaysia.
RESPONSIBILITIES OF THE BOARD
The Board acknowledges its responsibilities for maintaining effective and sound internal control systems, covering
all its financial and operating activities, to safeguard the assets of the Group’s and shareholders’ interest. The
Board has established an ongoing process to continuously review the adequacy, integrity and effectiveness of the
Group’s system of internal controls to ensure implementation of appropriate system to effectively identify, evaluate
and manage practical risks of the Group and to mitigate the effects of the principal risks on achieving the Group’s
business objectives.
In view of the limitations inherent in any system of internal controls, it should be appreciated that an effective
system of internal controls is designed to manage the principal risks of the Group rather than to eliminate risk.
System of internal controls can only provide reasonable and not absolute assurance against material misstatement,
fraud or losses.
Whilst the Board maintains ultimate control over risk and control issues, it has delegated to the executive
management the implementation of the system of risk management and internal control within an established
framework. The Board has established key policies and has carried out a specific assessment of the Group’s
risk management and internal control systems, for the purpose of this statement.
The Audit Committee will assist the Board in reviewing the adequacy, integrity and effectiveness of the system
of internal controls within the Group and to ensure that adequate resources are channelled to obtain the level
of assurance required by the Board. The Audit Committee presents all its findings to the Board.
INTERNAL AUDIT FUNCTION
The Company engages the services of independent parties to carry out the internal audit functions. This is to
ensure that the business processes and internal controls for the Group are continually assessed and monitored,
to ensure statutory compliance and maintain data integrity. All findings will be presented independently to the
Audit Committee.
The monitoring, review and reporting arrangements undertaken by the Internal Auditor on a quarterly basis
provide reasonable assurance that the structure of controls embedded within the major business processes
of the Group are appropriate to the Group’s operations to properly manage the key risks of the Group to an
acceptable level.
The total costs incurred for the internal audit function of the Group for the financial year ended 31 December
2011 amounted to RM42,000.