Page 81 - S P Setia Annual Report 2016

 

 

 

 

 

Page 81 - S P Setia Annual Report 2016
P. 81

S P Setia Berhad Group                                 Our Business | Our Performance Review | Our Leadership and People   79
          Annual Report 2016                                        | Our Achievements and Accolades | Our Sustainability Statement
                                                                   | Our Governance | Our Financial Statements | Other Information




                                                                                Corporate Governance Statement


          5.   PRINCIPLE 5 - UPHOLD INTEGRITY IN FINANCIAL REPORTING
              5.1   Compliance with Applicable Financial Reporting Standards

                   Financial Reporting

                   In presenting the annual audited financial statements and quarterly announcement of results to shareholders, the Directors
                   aim to present a balanced and understandable assessment of the Group’s position and prospects. The AC assists the Board by
                   reviewing the information to be disclosed, to ensure completeness, accuracy and adequacy prior to release to Bursa Securities
                   and the Securities Commission.

                   The Directors are required by the Act to prepare financial statements for each financial year which have been made out in
                   accordance with the provisions of the Act and applicable approved accounting standards and give a true and fair view of the state
                   of affairs of the Group and of the Company at the end of the financial period and of the results and cash flows of the Group and
                   of the Company for the financial period.

                   The Directors are satisfied that in preparing the financial statements of the Group and of the Company for FY2016, the Group
                   has used the appropriate accounting policies and applied them consistently. The Directors are also of the view that relevant
                   approved accounting standards have been followed in the preparation of these financial statements. The Statement of Directors’
                   Responsibility is also enclosed in page 201 of the Annual Report.                     For more information.

              5.2   Assessment of Suitability and Independence of the Auditor

                   Relationship with External Auditors

                   The external auditors play an important role in ensuring the reliability of the Company’s financial statements and providing the
                   assurance of accuracy to shareholders. The Board via the AC maintains a formal and transparent professional relationship with
                   the Group’s external auditors. The role of the AC in relation to the auditors is described in the AC Report set out on page 90 and
                   page 91 of this Annual Report.                                                        For more information.

                   The Company has in place a policy to assess the suitability and independence of external auditors. A performance review of
                   the external auditors will be conducted annually by the AC. There are specific non-audit services set out in the policy that are
                   prohibited from being performed by the external auditors unless the AC’s approval is obtained.
                   The suitability and independence of the external auditors is also assessed from different dimensions which are provided in the
                   policy inter alia limitation to the number of years for lead engagement partner and other key audit partners, fee dependence of
                   the external audit firm on a single client and employment of key audit partners and senior audit staff formerly with the external
                   auditors. The external auditors shall provide a written assurance to the Audit Committee confirming that they are and have been
                   independent throughout the conduct of the audit engagement in accordance with the terms of all relevant professional and
                   regulatory requirements.


          6.   PRINCIPLE 6 - RECOGNISE AND MANAGE RISKS

              6.1   Sound Framework to Manage Risks

                   Risk Management and Internal Control

                   The Board maintains a sound risk management framework and system of internal control to safeguard shareholders’ investment
                   and the Group’s assets. A Management-level Management Risk Team under the purview of the President and CEO spearheads
                   risk management activities to assist the RMC in ensuring adequate risk management controls are in place in the Group. The
                   Statement on Risk Management and Internal Control which provides an overview of the state of internal controls within the
                   Group is set out on pages 85 to 89 of this Annual Report.                             For more information.

              6.2  Internal Audit Function

                   The Group has an in-house Internal Audit Department that reports directly to the AC. The internal audit function is described in
                   the AC Report set out on page 92 of this Annual Report.                               For more information.
   76   77   78   79   80   81   82   83   84   85   86