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Overview Our Business
Strategic Review
Corporate Governance
Financial Statements
Other Information
Audit Committee Report
As at 31 December 2015
Risk Management and Internal Control
• Reviewed with Management the quarterly status reports on Enterprise Risk Management including risk profile and key risks of the
Group and recommended changes to the risks and related mitigating actions as appropriate. These were based on the business trends
and the industry. The Committee also reviewed the risk methodology to ensure that key and high risks were identified and tracked;
• Evaluated the overall adequacy and effectiveness of the system of internal controls including information technology and network
controls, the Group’s financial, auditing and accounting organisations and personnel and the Group’s policies and compliance
procedures with respect to business practices, through a review of the results of work performed by internal and external auditors
and discussions with key members of Maxis Management Team;
• Emphasised data security and the ability to resist cyber-attacks and online fraud. The Chief Technology Officer has regularly reported
to the Committee which monitors progress in keeping up-to-date with the latest techniques; and
• Reviewed the updated Employee Code of Business Practice, Vendor Code of Business Practice, compliance with the Personal Data
Protection Act, the Whistle-Blowing policy and the outcome of any defalcation or fraud cases investigated.
Financial Reporting
• Reviewed with the appropriate officers of the Group, the quarterly financial results and annual audited financial statements of the
Group, including related announcements, before recommending their approval, and the release of the Group’s financial results to Bursa
Securities, to the Board;
• The reviews on the financials focused on the matters set out in Section 5 of the Terms of Reference, “Responsibilities” under the
heading “Financial Reporting” as well as the following areas, where relevant:
- MMLR (Bursa Securities Main Market Listing Requirements);
- Provisions of the Companies Act, 1965 and other legal and regulatory requirements; and
- Malaysian Financial Reporting Standards issued by the Malaysian Accounting Standards Board;
• Reviewed related party transactions and mandate for recurrent related party transactions to ensure compliance with MMLR and the
Group’s policies and procedures.
Overall Governance, Regulatory and other updates
The Committee reviewed changes in material litigation, law and regulations, compliance with loan covenants and regulatory updates on the
Group’s business.
Internal Audit
• Reviewed the adequacy of the charter of the internal audit function and approved Internal Audit’s proposals to enhance the charter in
line with the current standards for risk-based Professional Practice of Internal Auditing and to reflect the changes to the Internal Audit
practice on auditing;
• Reviewed and approved the Internal Audit Annual Audit Plan based on the 3-year Internal Audit Roadmap (2015-2017), which
reflected the changing risk landscape of the organisation and industry. The plan is focused on strategic areas namely business
operations, technology and advisory audits;
• Reviewed the scope and coverage of the planned activities and ensured principal risk areas and key processes of the business
(identified by the Enterprise Risk Management department and Internal Audit department) were adequately addressed in the plan;
• Reviewed the progress of the Internal Audit Annual Audit Plan 2015, status of Internal Audit assignments including key findings from
audit reports, audit recommendations by the internal auditors, results of investigations performed by the internal auditors and the
representations made, and the corrective actions taken by Management in addressing and resolving issues, and ensured that all issues
were adequately addressed on a timely basis; and
• Reviewed the adequacy of resources and the competencies of staff within the Internal Audit department to execute the audit plan
and reviewed the performance of Internal Audit department staff against the Internal Audit Division’s Key Performance Indicators
