Annual Report 2016
41
CORPORATE GOVERNANCE REPORT
RISK MANAGEMENT AND INTERNAL CONTROLS AND INTERNAL AUDIT
– continued
For the purpose of the Board expressing its opinion and in line with the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) Internal Controls Integrated Framework, “internal
controls” is broadly defined as a process effected by an entity’s board of directors and other personnel,
designed to provide reasonable assurance regarding the achievement of objectives in the following
categories:
(a)
effectiveness and efficiency of operations;
(b)
reliability of financial reporting; and
(c)
compliance with applicable laws and regulations.
The first category addresses an entity’s basic business objectives, including performance and profitability
goals and safeguarding of assets. The second category relates to the preparation of reliable published
financial statements, including interim and full year financial reports and financial information derived from
such statements, reported publicly. The third category deals with the compliance with those laws and
regulations to which the entity is subject.
The Directors are of the view that the enhanced internal control measures are adequate and effective.
The Board has received assurance from the Managing Director and the Chief Financial Officer of the
Company that:
(a)
the financial records of the Group have been properly maintained and the financial statements for
the Year give a true and fair view of the Group’s operations and finances; and
(b)
the system of risk management and internal controls in place is adequate and effective in
addressing the material risks of the Group in its current business environment.
