APM AUTOMOTIVE HOLDINGS BERHAD
28
INTERNAL CONTROL
STATEMENT
INTERNAL AUDIT FUNCTION
The Audit Committee is assisted by the Group’s in-house Internal Audit department. The internal audit function is
an integral part of the Group’s internal control system with the audit department reporting to the Audit Committee.
Internal audit’s primary role is to provide independent, objective assurance and consulting services designed to add
value and improve the operations of the Group. Internal audit carries out regular and systematic reviews of the system
of internal control of the Group and also the extent of compliance with the Group’s operating policies and procedures.
Audit reports and plan status are submitted to the Audit Committee for review on a quarterly basis. Included in the
reports are recommended corrective measures on findings identified for implementation by Management.
OTHER KEY ELEMENTS OF INTERNAL CONTROL
Other key elements of the internal control system of the Group are as follows:
l
The executive directors manage the businesses and hold dialogues with senior management of the various
subsidiaries;
l
There are clearly defined delegation of responsibilities and limits of authority for different processes, decisions
and commitments;
l
The Executive Management Committee (“EMC”), established by the Board to manage and control the Group’s
businesses, monitors the performance of the subsidiaries and identifies areas requiring follow-up actions. The
EMC is further supported by various sub-committees. Matters beyond the EMC’s limits of authority are referred
to the Board for approval;
l
The Board meets at least quarterly to discuss the performance of the Group and other major issues. The year
end financial statements and the announcements of the quarterly results are reviewed by the Audit Committee
before the Board’s approval and release to Bursa Malaysia; and
l
The Board also reviews and approves the Group’s annual budget and business plan consisting of the budgets
and business plans of the subsidiaries. These plans set out the key business objectives of the respective
subsidiaries including major risks, opportunities as well as the action plans.
This Internal Control Statement has not dealt with associates and joint ventures where the Group does not have
full management over them. However, the Group’s interest is served through representations on the Board of the
respective associates and joint ventures.
The Board has received reasonable assurance from the Management that Group’s risk management and internal
control system is operating adequately and effectively in all material aspects based on the Group’s risk management
framework.
