2012 Annual Report - Media Prima Berhad

D. INTERNAL AUDIT FUNCTION
The Group has an established in-house Internal Audit
function carried out by the Group Corporate
Governance Department (GCG).
GCG headed by the Group General Manager, Encik
Sere Mohammad Mohd Kasim reports to the Audit
Committee. The activities of GCG are guided by the
Internal Audit Charter that defines the roles,
responsibilities, accountability and scope of work of
the Department. This is to enable the Internal Audit
function to remain relevant in the context of new
challenges and opportunities in the changing global
business and economic environment.
GCG has a total of 14 staff as at 31 December 2012.
There were 2 new recruits for the year. The total
operation costs of the department for 2012 was
RM1,402,635 (2011: RM840,170) comprising of mainly
salaries, travelling expenses and training.
GCG, through a systematic and structured approach
is responsible for the following:
i. Provide independent assurance to the Board and
Management that adequate and effective internal
controls system is in place to safeguard
Company’s assets;
ii.
iii.
Recommend improvements and enhancements
to the existing system of internal control and
work procedures/processes; and
Reference point to ensure effective
implementation of policies and procedures and
agent of change to promote best corporate
governance practices.
The scope of coverage encompasses all units and
operations of the Group, including the subsidiaries.
The selection of units to be audited is premised on a
risk based approached and it is the responsibility of
GCG to provide the Audit Committee with an
independent and objective report on the state of
affairs of the risk management, internal control and
governance processes.
TELEVISION
NETWORKS
RADIO OUTDOOR
NETWORKS
During the year, the GCG has completed and issued
internal audit reports for 14 assignments based on the
approved annual audit plan. The audit conducted in
2012 covered wide range of operational areas within
the Group which include review on Business Continuity
Management, Content Acquisition (Television
Networks), Ground Event (Television Networks and
NSTP), Primeworks Studios for Film & Drama and
Entertainment & Chinese Production, Editorial and
Advertisement of NSTP, Big Tree Outdoors (Projects),
Advertising & Promotion of Radio Networks,
Management Claims and Expenses, Annual Assessment
2012 and NSTP Annual Stock Take 2012. The
corresponding reports of the audits performed were
presented to the Audit Committee and forwarded to
the Management for attention and corrective actions.
The Management is responsible for ensuring that
corrective actions on reported weaknesses as
recommended are taken within the required timeframe.
GCG continuously monitors the implementation of
audit recommendations through periodic follow-up
reviews.
GCG also works closely with External Auditors to resolve
any control issues and assists in ensuring that appropriate
management actions are taken. Management is
responsible for ensuring that a written report on action
planned or completed is sent to the Audit Committee
and the Group General Manager, GCG.
During the year under review, the following activities
were also carried out by GCG:
• Carried out investigation audit and ad-hoc
assignments as instructed by the Audit Committee
and Senior Management;
• Attended major competition based programmes
organised by the Group’s Television Networks and
Print Media such as Anugerah Juara Lagu,
Anugerah Bintang Popular BH, NST Spell It Right
Challenge, Mentor and Versus to provide
independent verification and confirmation of the
competitions results and/or SMS votes;
• Participated in ground events organised by the
Group such as Karnival Jom Heboh, Karnival Futsal
Harian Metro and Karnival GP Joran for observation
and identification of areas for process improvements;
PRINT
CONTENT
CREATION
NEW MEDIA
133
annual
report
2012
From Our Perspective Who We Are Our Strategy & Achievements Our Performance Our Responsibility Our Leadership Corporate Governance The Financials Additional Information