Annual Report
2015
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DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
39
Statement on
Corporate Governance
(cont’d)
PRINCIPLE 5: UPHOLD INTEGRITY IN FINANCIAL REPORTING
Financial Reporting
The Board aims to present a balanced, clear and timely assessment of the Group’s financial position and
prospects by ensuring quality financial reporting through the annual audited statements and quarterly financial
results to the stakeholders, in particular, shareholders, investors and the regulatory authorities.
The Board is assisted by the Audit Committee to oversee the financial reporting processes to ensure that the
financial statements of the Group and the Company comply with applicable financial reporting standards in
Malaysia and that all applicable accounting policies used are supported by reasonable prudent judgments and
estimates. The Board has taken due care and reasonable steps to ensure that the requirements of accounting
standards and relevant regulations were fully met.
Sustainability and Independence of External Auditors
The Group has established a transparent and appropriate relationship with the External Auditors through the
Audit Committee of the Company.
During the year, the Audit Committee met with the external auditors twice to discuss their audit plans, audit
findings and their reviews of the Group’s Financial Results/Statutory Statement of Accounts. In addition, the
external auditors are invited to attend the Annual General Meeting of the Company and are available to
answer shareholders’ questions on the conduct of the statutory audit and the preparation and contents of their
audit report.
The External Auditors have also confirmed 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.
PRINCIPLE 6: RECOGNISE AND MANAGE RISKS
Sound Risk Management Framework
The Risk Management Committee whose current members comprised of five (5) members of the Board assists
the Audit Committee in discharging its risks management and control responsibilities.
The Risk Management Committee has been tasked to identify and communicate the existing and potential
critical risks areas faced by the Group and the management action plans to mitigate such risks by working with
the Internal Auditors in providing periodic reports and updates to the Board.
The Board confirms the Group is commited to ongoing review of the entire control, compliance and risk
management controls.
Internal Audit Function
The Company has an in-house internal audit function, which reports directly to the Audit Committee on the
adequacy and effectiveness of the current system of internal controls from the perspectives of governance,
risks and controls.
