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AEMULUS HOLDINGS BERHAD
TA R G E T I N G T H E B U L L’ S E Y E
Statement on Risk Management
and Internal Control
(Cont’d)
INTRODUCTION
The Malaysian Code of Corporate Governance 2012 requires listed companies to maintain a sound system of internal controls
to safeguard shareholders’ investment and the Group’s assets.
Guided by the Statement on Risk Management and Internal Control: Guidance for Directors of Public Listed Companies, the
Board of Directors of Aemulus Holdings Berhad is pleased to present the Statement on Risk Management and Internal Control
which is prepared in accordance with Paragraph 15.26(b) of the ACE Market Listing Requirements of Bursa Malaysia Securities
Berhad.
RESPONSIBILITY FOR RISK MANAGEMENT AND INTERNAL CONTROL
The Board recognises its overall responsibility for the Group’s systems of internal control and for reviewing the adequacy
and integrity of those systems. In view of the limitations that are inherent in any systems of internal control, the systems
of internal control are designed to manage risk within tolerable levels rather than eliminate the risk of failure to achieve
business objectives. Hence, such system by its nature can only provide reasonable and not absolute assurance against material
misstatement, error or losses.
The Board has established an ongoing process for identifying, evaluating and managing the significant risks faced, or
potentially exposed to, by the Group in pursuing its business objectives. This process has been in place throughout the
financial year and up to the date of approval of the annual report. The adequacy and effectiveness of this process have been
continually reviewed by the Board and are in accordance with the Internal Control Guidance.
RISK MANAGEMENT FRAMEWORK
The Board practises proactive risks identification in the processes and activities of the Group, particularly in major proposed
transactions, changes in nature of activities and/or operating environment, or venturing into new operating environment which
may entail different risks, and assesses the appropriate risk response strategies and controls. Day-to-day risk management
of operations are delegated to key management staff and Head of Department to manage identified risks within defined
parameters.
Periodic meetings attended by Head of Department and key management staff are held to discuss key operational issues,
business performance matters and appropriate mitigating controls, when necessary.
INTERNAL AUDIT
The Board acknowledges the importance of internal audit function and has outsourced its internal audit function to an
independent professional accounting and consulting firm, BDO Governance Advisory Sdn Bhd as part of its efforts to provide
adequate and effective internal control systems. The performance of internal audit function is carried out as per the annual
audit plan approved by the Audit Committee.
The internal audit adopts a risk-based approach in developing its audit plan which addresses all the core auditable areas of
the Group based on their risk profile. The audit focuses on high risk area to ensure that an adequate action plan has in place
to improve the controls in place. The audit ascertains that the risks are effectively mitigated by the controls. On a quarterly
basis or earlier as appropriate, the internal auditors report to the Audit Committee on areas for improvement. The highlighted
areas will be followed up closely to determine the extent of their recommendations that have been implemented by the
management.