In addition the respective executive directors also made field visits to these

In addition the respective executive directors also

This preview shows page 36 - 38 out of 41 pages.

manage these overseas operations. In addition, the respective executive directors also made field visits to these overseas operations as well as to conduct periodic performance review meetings with the management personnel, thus ensuring the business plans and targets are met. The Board does not regularly review the internal control system of its other associated companies although management accounts are provided for information, as the Board does not have any direct control over their operations. As for its foreign incorporated joint ventures, the Group has appointed representatives to the respective members’ councils of these ventures which hold regular meetings to oversee and manage their respective operations.
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36 BERJAYA LAND BERHAD (201765-A) ANNUAL REPORT 2015 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Internal Audit Functions The Board recognises that effective monitoring on a continuous basis is a vital component of a sound internal control system. In this respect, the internal auditors provide the Audit Committee with independent and objective reports on the state of internal controls of the operating units within the Group to assist the Audit Committee in monitoring and assessing the effectiveness of the internal control system. Observations from internal audits are presented to the Audit Committee together with management’s responses and proposed action plans for its review. The action plans are then followed up during subsequent internal audits with implementation status reported to the Audit Committee. The internal audit function is principally carried out by the Group’s Internal Audit Division. Key Features of the Internal Control System Some of the identified key features of the Group’s system of internal control include: Clear organisation structure and delineated reporting lines Defined levels of authority Timely financial and operations reports Scheduled operations and management meetings Standard operating procedures for the Leisure Division Capable workforce with ongoing training efforts Formal employee appraisal system which enables appraisal of employees and rewarding employees based on performance Payment functions controlled at Head Office Physical security and systems access controls Centralised procurement function that ensures approval procedures are adhered to, as well as to leverage on the Group’s purchasing power Surprise checks on agents to ensure compliance with the Group’s policies and procedures Independent assurance on the system of internal control from regular internal audit visits Business Continuity Planning Succession planning to ensure that key positions in the Group are always held by capable employees who are well aware of the Group’s risks, and operating policies and procedures The Board remains committed towards operating a sound system of internal control and therefore recognises that the system must continuously evolve to support the type of business and size of operations of the Group. As such, the Board,
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