Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 33 Statement on Risk Management and Internal Control (cont’d) For the financial year ended 31 December 2016, the following subsidiaries of the Group were audited by Sterling:- Audit Period Reporting Month Name of Entity Audited Audited Areas 1st Quarter (Jan 2016 – Mar 2016) May 2016 • Excel Force MSC Berhad • Winvest Global Sdn Bhd • Insage (MSC) Sdn Bhd • Winvest Global Sdn Bhd • Review Sales & Marketing Standard Operating Procedure Follow-up actions on previously reported audited findings: - • IA reported in November 2015 on Finance & Accounts, Human Resources Management • IA reported in May 2015 on Project Management 2nd Quarter (Apr 2016 – June 2016) Aug 2016 • Excel Force MSC Berhad • Insage (MSC) Sdn Bhd • Winvest Global Sdn Bhd • Project Management Follow-up actions on previously reported audited findings: - • IA reported in May 2015 on Project Management 3rd Quarter (July 2016 – Sept 2016) Nov 2016 • Excel Force MSC Berhad • Excel Forces MSC Berhad • Insage (MSC) Sdn Bhd • Customer Services Follow-up actions on previously reported audited findings: - • IA reported in August 2016 on Project Management • IA reported in May 2015 on Project Management 4rd Quarter (Oct 2016 – Dec 2016) February 2016 • Excel Force MSC Berhad • Excel Forces MSC Berhad • Excel Forces MSC Berhad • Review of the Risk Register, Risk Matrix and Risk Management Framework. Follow-up actions on previously reported audited findings: - • IA reported in November 2016 on Customer Service • IA reported in August 2016 on Project Management 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; 5. Management accounts and reports are prepared regularly for monitoring of actual performance; 6. Board participation at the macro perspective in the performance monitoring of all subsidiaries under the Group; 7. An internal audit function carries out quarterly internal audit to ascertain the adequacy of and to monitor the effectiveness of operational and financial procedures. The internal audit also reviews and assesses risks faced by the Group and reports directly to the Audit Committee; 8. Regular internal audit visits to monitor compliance with policies and procedures to assess the integrity of both financial and non-financial information provided; and 9. Follow-up visits are then subsequently conducted by the internal auditor to ensure proper implementation of agreed action plans by the respective process owners.