PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 56 CONCLUSION For the financial year under review, after due and careful assessment and based on information and assurances provided by the Group Executive Vice Chairman, Group Chief Executive Officer, Managing Directors and Executive Directors, the Board is satisfied that the Group’s risk management and internal control system was operating adequately and effectively in all material aspects throughout the financial year and up to the date of approval of this statement by the Board. Measures are in place and continually being taken to ensure the on-going internal controls are adequate and effective to safeguard shareholders’ investments and the Group’s assets. There were no material losses, contingencies or uncertainties as a result of weaknesses in the risk management and internal control system that would require separate disclosures in this Annual Report. Nevertheless, the Board will continue to ensure that the Group’s risk management and internal control system are able to constantly adapt and prevail in its changing and challenging business environment. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS Pursuant to Paragraph 15.23 of the MMLR, the External Auditors have reviewed this Statement for inclusion in the Annual Report of the Group for the FY2019. Their review is performed in accordance with Audit and Assurance Practice Guide 3: Guidance for Auditors on Engagements to Report on the Statement of Risk Management and Internal Control (“AAPG 3”) issued by the Malaysian Institute of Accountants. The External Auditors’ procedures have been conducted to assess whether the Statement on Risk Management and Internal Control is supported by the documentation prepared by or for the Directors and that it is an appropriate reflection of the process adopted by the Directors in reviewing the adequacy and integrity of the system of internal control for the Group. AAPG 3 does not require the External Auditors to consider whether this Statement covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk and control procedures. Based on their procedures performed, the External Auditors have reported to the Board that nothing has come to their attention which causes them to believe that this Statement is not prepared, in all material respects, in accordance with the disclosures required by paragraph 41 and 42 of the “Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers”, nor is factually inaccurate. This Statement was approved by the Board of Directors of PRG on 6 May 2020. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL cont’d