74
Maxis Berhad
Annual Report 2014
MONITORING AND REVIEW
The processes that monitor and review the effectiveness of the system of risk management and internal controls include:
1. Management Representations made to the Board
by the CEO and Chief Financial and Strategy Officer (“CFSO”), based on
representations made to them by Management on the adequacy and effectiveness of the Group’s risk management and internal
control system in their respective areas. Any material exceptions identified are highlighted to the Board.
2. Internal Audit
in their quarterly report to the Audit Committee and Senior Management continues to highlight significant issues and
exceptions identified during the course of their review on processes and controls compliance.
3. The Defalcation Committee
meets and deals regularly on matters pertaining to fraud and unethical practices. All issues arising
from work carried out by the investigation team within the Internal Audit department and Management are channeled to this
committee for deliberation. Appropriate actions are then taken based on the findings.
4. Enterprise Risk Management department
reports to the Board on a half-yearly basis through the Audit Committee on the risk
profile of the Group and the progress of action plans to manage and mitigate the risks.
Management has taken the necessary actions to remediate weaknesses identified for the period under review. The Board and
Management will continue to monitor the effectiveness and take measures to strengthen the risk management and internal control
environment.
CONCLUSION
For the financial year under review and up to the date of issuance of the financial statements, the Board is satisfied with the adequacy
and effectiveness of the Group’s system of risk management and internal control to safeguard the interest of shareholders. No material
losses, contingencies or uncertainties have arisen from any inadequacy or failure of the Group’s system of internal control that would
require separate disclosure in the Group’s Annual Report. The CEO and CFSO have provided assurance to the Board that the Group’s
risk management and internal control system, in all material aspects, is operating adequately and effectively.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
As required by paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirement, the external auditors have
reviewed this Statement on Risk Management and Internal Control. Their limited assurance review was performed in accordance
with Recommended Practice Guide (“RPG”) 5 (Revised): Guidance for Auditors on Engagements to Report on the Statement on Risk
Management and Internal Control included in the Annual Report, issued by the Malaysian Institute of Accountants. RPG 5 (Revised)
does not require the external auditors to form an opinion on the adequacy and effectiveness of the risk management and internal control
systems of the Group.
Statement on
Risk Management and Internal Control
