Maxis Berhad
Annual Report 2015
page
60
Audit Committee Report
As at 31 December 2015
External Audit
Reviewed with the external auditors, their terms of engagement, remuneration and the audit for the financial year to ensure that their
scope of work adequately covers the activities of the Group:
• The Committee has reviewed the audit related and non-audit services provided by the external auditors, which included tax
compliance and advice, project management assistance and advice connected with the major internal structuring of the Group, as
explained in Note 7 to the financial statements;
• Reviewed the results and issues arising from the external auditors’ review of the half-yearly financial results and audit of the year
end financial statements and the resolution of issues highlighted in their report to the Committee;
• Undertook the annual assessment of the suitability and independence of the external auditors and reviewed the level of compliance
with the Maxis External Audit Independence policy. Considerations in the assessment included the adequacy of experience,
resources and professional staff assigned to the audit for the 2015 financial year;
• The Committee reviewed the performance after each audit, including the results of questionnaire completed by relevant directors
and staff, before making a recommendation on the re-appointment of auditors to the Board.
Employee Share Option Scheme (“ESOS”) and Long Term Incentive Plan (“LTIP”)
• Reviewed and verified that the ESOS and LTIP grants for the financial year were allocated to employees as per the criteria
approved, disclosed and established pursuant to ESOS and LTIP.
Others
• The Committee reviewed borrowing and hedging policies and satisfies itself on the going concern and risk management
implications.
TRAINING
The training attended by the Committee members during the financial year is reported under the Statement on Corporate Governance
on page 52.
INTERNAL AUDIT FUNCTION
The Group has an independent internal audit function which reports directly to the Committee, the primary responsibility of which
is to provide independent and objective assessment of the adequacy and effectiveness of the risk management, internal control and
governance processes established by management and/or the Board within the Group.
The Head of the Internal Audit department reports directly to the Chairman of the Committee, and is responsible for enhancing the
quality assurance and improvement programme of the internal audit function. Its effectiveness is monitored through continuous internal
self-assessment and independent external assessment, and the results are communicated to the Committee.
The total costs incurred for the internal audit function for the financial year ended 31 December 2015 amounted to RM4.0 million
(2014: RM4.6 million).
The internal audit function fully abides by the provisions of its charter. The internal audit charter is reviewed and approved by the
Committee annually and complies fully with the Institute of Internal Auditors’ International Professional Practices Framework.
TERMS OF REFERENCE OF THE COMMITTEE
The terms of reference of the Committee can be viewed on the Company’s website
.
