The Board acknowledges its responsibility for maintaining and reviewing the effectiveness of the Group’s internal control system. Such system is implemented to minimize the risks to which the Group is exposed and used as a management tool for the day-to-day operation of business. The system can only provide reasonable but not absolute assurance against misstatements or losses.
The management is primarily responsible for the design, implementation, and maintenance of the internal control system to safeguard the Shareholders’ investment and assets of the Group. Budgets and forecasts on all capital and revenue items are prepared and reviewed by senior management. The management monitors the business activities closely and reviews monthly financial results of operations against budgets/forecast.
Proper controls are in place for the recording of complete, accurate and timely accounting and management information. Regular reviews and audits are carried out to ensure that the preparation of financial statements is carried out in accordance with generally accepted accounting principles, the Group’s accounting policies and applicable laws and regulations.
The Internal Audit Department is assigned with the task to perform regular reviews on selected systems of the Group and will report audit review findings or irregularities, if any, to management and advise on the implementation of necessary steps of systems to enhance operational or financial controls. The result of internal audit reviews and agreed action plans are reported to the Audit Committee and the Board.
During the Year, the management had analyzed the control environment and risk assessment, identified the various control systems implemented. The approach of the review includes conducting interviews with relevant management and staff members, reviewing relevant documentation of the internal control system and evaluating findings on any deficiencies in the design of the internal controls and developing recommendations for improvement, where appropriate. The scope and findings of the review had been reported to and reviewed by the Audit Committee.
The following policies and procedures are also in place to enhance the internal control system:
Regular reports on revenue, marker receivables’ ageing and debtors’ ageing and internal financial reports are prepared to the management which give a balanced and understandable assessment of the Group’s financial performance;
Surprise physical count of cash, chips and client deposits held in casino and coupons for casino are performed by Internal Audit Department to safeguard the assets;
Regular review on operational systems of hotel and gaming business segments to ensure the service quality;
Monthly updates on internal financial statements are provided to all Directors which give a balanced and understandable assessment of the Group’s performance, position and prospects in sufficient detail;
the Systems and Procedures on Disclosure of Inside Information to ensure, with the assistance of an internal work team (if required), that any material information which comes to the knowledge of any one or more officers should be promptly identified, assessed and escalated for the attention of the Board;
the policies and practices on compliance with legal and regulatory requirements which shall be reviewed and monitored regularly by the Corporate Governance Committee as delegated by the Board;
the establishment of a CCT Compliance Committee to monitor, control and regularly review continuing connected transactions of the Company and ensure proper compliance with all relevant laws and regulations, the Listing Rules and disclosure requirements; and
a whistle-blowing policy for employees of the Group to raise concerns, in confidence, about possible improprieties in financial reporting, internal control or other matters. Such arrangement will be reviewed by the Audit Committee which ensures that proper arrangement is in place for fair and independent investigation of the matters.
The Board and the Audit Committee had conducted a review on the effectiveness of internal control system (including financial, operational, compliance controls, risk management functions) and the adequacy of resources, qualifications and experience of staff of the Company’s accounting and financial reporting function, and training programmes and budget of the Group for the Year. The Board considered that the Group has been maintaining sound and effective internal controls to safeguard the Shareholder’s investment and the Group’s assets.
