The Importance Of Internal Control

1038 Words5 Pages
Internal control is a process for an organization to assume their target and objectives in compliance with laws and regulations, reliable finance reporting and efficiency or effectiveness of the operation. Statement of internal control (SIC) used as a guideline to audit committees to describe the effectiveness of internal control in an organization and it is authorized by those organizations accounting officer. In the current climate of fiscal restraint and declining availability of resources, it is important that central government bodies can demonstrate the resources that they are responsible for are appropriately managed and controlled. High quality and proportionate internal control systems will help organizations achieve…show more content…
If significant internal control developments have been, or are, necessary to correct weaknesses, an outline of the actions taken, or proposed, should be included in the SIC. The purpose of this disclosure is to deliver assurance that significant internal control issues have been, or are being, addressed and that the SIC is a balanced reflection of the actual control position The Board of Directors of DRB-HICOM is responsible for the effectiveness of the Group’s risk management and internal control system. The Board need to maintain good internal control system which include good governance, risk management and control processes within the Group. The Board also acknowledges the presence of a sound system of internal control in safeguarding shareholders’ investments, the Group’s assets and other stakeholders’ interests as well as ensuring compliance with applicable laws and…show more content…
The board of director play a vital role to create effective corporate governance because he or she was on top of overall control over the company and responsible to implements proper internal control. To ensure sound governance, Board of DRB-HICOM Berhad acknowledge that it required effective interaction among the board, management, internal and external auditor. Director need to understand their duties and be in a position to discharge them properly. The Board of DRB-HICOM Berhad discharge of its responsibilities that assisted by Audit Committee, Nomination and Remuneration Committee and Board of risk committee to make it easy to control the company overall
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