20
SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
REPORT ON
CORPORATE GOVERNANCE
RISK MANAGEMENT AND INTERNAL CONTROLS
PRINCIPLE 11: THE BOARD IS RESPONSIBLE FOR THE GOVERNANCE OF RISK. THE BOARD SHOULD ENSURE THAT MANAGEMENT
MAINTAINS A SOUND SYSTEM OF RISK MANAGEMENT AND INTERNAL CONTROLS TO SAFEGUARD THE
SHAREHOLDERS’ INTERESTS AND THE COMPANY’S ASSETS, AND SHOULD DETERMINE THE NATURE AND EXTENT
OF THE SIGNIFICANT RISKS WHICH THE BOARD IS WILLING TO TAKE IN ACHIEVING ITS STRATEGIC OBJECTIVES.
The Board acknowledges that it is responsible for the overall internal control framework and maintains a sound system of
risk management and internal controls to safeguard the shareholders’ interests and the Company’s assets. The Audit and
Risk Committee (“ARC”) reviews the adequacy of the Company’s internal financial controls, operational and compliance
controls, and risk management policies and systems established by the Management.
The ARC conducts a review to ensure the adequacy of the internal audit function at least annually. The system of internal
controls currently implemented by the Group provides reasonable assurance against financial misstatements or loss.
The Board recognises that no internal control system will preclude all errors and irregularities, as a system is designed
to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and
not absolute assurance against material misstatement or loss. The Board and ARC get assurance based on all works
performed as listed below:–
1.
Internal controls established and maintained by the Group as documented and reviewed as necessary in the matrix
of risk register, group policies, and Standard Operating Procedures;
2.
Work performed by the internal auditors;
3.
Work performed by the external auditors;
4.
ARC discussions and reviews by the ARC and the Board;
5.
Reviews performed by the management;
6.
Execution of the Group Whistle Blowing Policy;
7.
Work performed by Workplace Safety Committee; and
8.
Other reviews performed by other committees;
