Excel Force MSC Berhad Annual Report 2015

E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 29 During the financial year under review, Sterling has presented their status report: follow-up actions on previously reported audited findings in respect of the following subsidiaries of the Group:- Name of Entities audited by Sterling Date of Follow up Status Report Excel Force MSC Berhad on Finance and Accounts functions for audit conducted for quarter July - September 2014 26 May 2015 Excel Force MSC Berhad on Customer Service functions for audit conducted for quarter April - June 2014 26 May 2015 Insage (MSC) Sdn Bhd and Winvest Global Sdn Bhd on Project Management functions for audit conducted for quarter January – March 2015 20 August 2015 Excel Force MSC Berhad on Finance and Accounts functions for audit conducted for quarter July - September 2014 20 August 2015 Excel Force MSC Berhad on Customer Service functions for audit conducted for quarter April - June 2014 20 August 2015 Excel Force MSC Berhad on Quality Assurance functions for audit conducted for quarter April – June 2015 20 November 2015 Insage (MSC) Sdn Bhd and Winvest Global Sdn Bhd on Project Management functions for audit conducted for quarter January – March 2015 20 November 2015 Insage (MSC) Sdn Bhd and Winvest Global Sdn Bhd on Project Management functions for audit conducted for quarter January – March 2015 23 February 2016 Winvest Global Sdn Bhd on Finance & Accounts, Human Resources and Administration functions for audit conducted for quarter July – September 2015 23 February 2016 The Key Elements of The Group’s Internal Control System Include: 1. Organisation structure with defined lines of responsibility, authority and accountability; 2. Policies and procedures for key business processes are formalised and documented for implementation and continuous improvements; 3. Quarterly Board meetings and monthly management meetings are held where information is provided to the Board and management covering financial performances and operations; 4. Training and development is provided as and when required by employees with the objective of enhancing their knowledge and competency; and 5. Management accounts and reports are prepared regularly for monitoring of actual performance. Risk Management Framework The Board recognises that risk management is an integral part of the Group’s business operations and that the identification and management of risks will affect the achievement of the Group’s business objectives. To this end, the Board has formalised a Risk Management Framework by implementing an on-going process of identifying, evaluating, monitoring and managing the significant risks affecting the achievement of its business objectives and has taken into account the guidance of the Malaysian Code on Corporate Governance. The management of risks in the daily business operation is assigned to management team and significant risks are identified and related mitigating responses as well as the corresponding internal control measures were deliberated at the Audit Committee and Board meeting. Assurance from Management The Board has received assurance from the Executive Director and Group Finance Manager that the Group’s risk management and internal control system are operating adequately and effectively in all material aspects, based on the risk management and internal control system of the Group. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (cont’d)