Serba Dinamik Annual Report 2016

090 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P 2. RISK MANAGEMENT (CONT’D) D) Assurance From Management The Board has received assurance from the Group Chief Executive Officer and the Group Chief Financial Officer that the Group’s risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control system adopted by the Group. Taking into consideration the assurance from the management and input from the relevant assurance providers, the Board is of the view that the Group’s risk management and internal control system in place for the financial year under review and up to the date of approval of this statement for inclusion in the Annual Report is adequate and effective to safeguard the interests of shareholders, customers, employees and the Group’s assets. 3. REVIEW OF STATEMENT BY EXTERNAL AUDITORS The external auditors have reviewed this Statement on Risk Management and Internal Control pursuant to the scope set out in 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 (‘MIA’) for inclusion in the annual report of the Group for the period ended 31 December 2016, and reported to the Board that nothing has come to their attention that cause them to believe that the statement intended to be included in the annual report of the Group, in all material respects: a) has not been prepared in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, or b) is factually inaccurate. RPG 5 (Revised) does not require the external auditors to consider whether the Directors’ Statement on Risk Management and Internal Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk management and internal control system including the assessment and opinion by the Board of Directors and management thereon. The auditors are also not required to consider whether the processes described to deal with material internal control aspects of any significant problems disclosed in the annual report will, in fact, remedy the problems. 4. CONCLUSION The Board is of the view that the risk management and internal control system described in this statement is considered appropriate to the business operations presently. Also, the risks taken are at an acceptable level within the business environment throughout the Group. It should be noted that such arrangements do not eliminate the possibility of collusion or deliberate circumvention of procedures by employees. Human error and/or other unforeseen circumstances can result in poor judgement. However, the risk management and internal control system that existed throughout the year provide a level of confidence on which the Board relies for assurance. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL (Cont’d)