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Overview Our Business
Strategic Review
Corporate Governance
Financial Statements
Other Information
Statement on
Risk Management and Internal Control
2. Audit Committee
The Audit Committee comprises five (5) non-executive members of the Board, the majority of whom are Independent Directors.
The Audit Committee comprises members who bring with them a wealth of knowledge, expertise and experience from
different industries and backgrounds such as telecommunications and media, finance and treasury, human resources and
general management. The Audit Committee reviews the Group’s financial reporting process, the system of internal controls and
management of enterprise risk, the audit process and the Group’s process for monitoring compliance with laws and regulations
and its own code of business conduct, as well as such other matters, which may be specifically delegated to the Committee by the
Board, from time to time. Throughout the financial year, Audit Committee members are briefed on corporate governance practices,
updates to Malaysian Financial Reporting Standards, legal and regulatory requirements and updates and key matters affecting the
financial statements of the Group.
The Audit Committee also reviews and reports to the Board the engagement and independence of the external auditors and their
audit plan, nature, approach, scope and other examinations of the external audit matters. It also reviews the effectiveness of the
internal audit function which is further described in the following section on Internal Audit.
The Audit Committee continues to meet regularly and has full and unimpeded access to the internal and external auditors and
all employees of the Group. The Chairman of the Audit Committee provides the Board with reports on all meetings of the Audit
Committee. Further details of the activities undertaken by the Audit Committee are set out in the Audit Committee Report on pages
58 to 60.
3. Internal Audit
The Internal Audit department continues to independently, objectively and regularly review key processes, check compliance with
policies/procedures and evaluate the adequacy and effectiveness of internal control, risk management and governance processes
established by Management and/or the Board within the Group. It highlights significant findings and corrective measures in
respect of any non-compliance to members of Maxis Management Team (“MMT”) and the Audit Committee on a timely basis.
Its work practices are governed by the Internal Audit Charter, which is subject to revision on an annual basis. The annual audit
plan, established primarily on a risk-based approach, is reviewed and approved by the Audit Committee annually and an update
is given to the Audit Committee every quarter. The Audit Committee oversees the Internal Audit department, its independence,
scope of work and resources. The Internal Audit department also maintains a quality assurance and improvement programme and
continuously monitors its overall effectiveness through internal self-assessment and independent external assessment.
The Internal Audit function meets the requirements of the latest International Standards for the Professional Practice of Internal
Auditing of the Institute of Internal Auditors Inc. Further activities of the Internal Audit function are set out in the Audit Committee
Report on pages 58 to 60.
4. Code of Business Practice
The Group is committed to conducting business fairly, impartially and ethically and in full compliance with all laws and regulations.
To this end, there are two detailed Maxis Code of Business Practices (“the Code”); one for Directors and employees and another
for third parties, which stipulate how Directors and employees and external parties such as vendors, dealers and business partners
should conduct themselves in all business matters. All Directors and employees are required to declare that they are in compliance
with the Code upon joining the Group. In addition, all Directors will be required to acknowledge the Code when there are significant
changes with it. Communications are made to all employees on the content of the Code throughout the year to ensure everyone
understands what is expected of them as employees. External parties such as vendors, dealers and business partners who
conduct business with the Group are required to sign a declaration that they have read and will adhere to the Code.
To support the implementation and effectiveness of the Code, there is an established Office of Business Practice to provide policy
guidance and to facilitate compliance. The Office of Business Practice will continuously review ways to enhance the Group’s
highest standards of business conduct and ethics, and to benchmark these against best practices. In addition, there is also an
Ethics Hotline, which serves as a safe and effective channel to allow employees or parties dealing with us to report any observed
behavioural inconsistencies which are not in accordance with the general standards and business ethics.
