Annual Report - QuamIR
Annual Report - QuamIR
Annual Report - QuamIR
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Corporate Governance <strong>Report</strong> (Continued)<br />
<br />
Internal Controls<br />
The Group has had in place an integrated framework of internal controls<br />
which is consistent with the COSO (the Committee of Sponsoring<br />
Organisations of the Treadway Commission) framework. Under the<br />
framework, the management is primarily responsible for the design,<br />
implementation and maintenance of internal controls to manage risks while<br />
the Board and its audit committee oversee the actions of the management<br />
and monitor the effectiveness of the controls that have been put in place. The<br />
framework and activities taken are illustrated below:<br />
<br />
COSO (the Committee of<br />
Sponsoring Organisations of the Treadway<br />
Commission)<br />
<br />
<br />
<br />
<br />
Control Environment<br />
<br />
Risk awareness and control consciousness are built into the culture of<br />
the Group.<br />
<br />
Channels to communicate the Company’s commitment to integrity and<br />
high ethical standards to the staff are established.<br />
<br />
Organisation chart, limits of authority and responsibility are set and<br />
communicated to staff concerned.<br />
<br />
Risk Assessment<br />
<br />
Identification, evaluation and assessment of the key risks affecting the<br />
achievement of the Group’s objectives are conducted from time to time,<br />
forming the basis for determining control activities.<br />
<br />
<br />
Control Activities<br />
<br />
• Policies and procedures for ensuring management directives are carried<br />
out.<br />
• <br />
• Control activities include authorizations, approvals, performance<br />
reviews, segregation of duties, asset security, access control,<br />
documentation and records, etc.<br />
<br />
<br />
Information and Communication<br />
<br />
Pertinent information is identified, captured and provided to the right<br />
person in a timely manner.<br />
<br />
Channels of communication across the Group and with external parties.<br />
<br />
Monitoring<br />
<br />
Onging assessment of control system’s performance.<br />
<br />
Management and supervisory activities.<br />
<br />
Internal audit activities.<br />
<br />
Effectiveness<br />
and efficiency of<br />
operations<br />
<br />
Reliability of<br />
financial reporting<br />
<br />
Compliance with<br />
applicable laws<br />
and regulations<br />
<br />
<br />
•<br />
21