Maxis Berhad | Annual Report 2013

60 Maxis Berhad | Annual Report 2013 • 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 Senior Management; • Reviewed with Management, the half-yearly status report on revenue assurance and subscriber fraud management; • Reviewed with Management, the half-yearly status report on business continuity plan; • Reviewed with Management, the annual report on system and information security; and • Reviewed the Employee Code of Business Practice, Vendor Code of Business Practice, the Whistle-Blowing policy and the outcome of any defalcation 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 the announcements pertaining thereto, before recommending their approval and the release of the Group’s financial results to Bursa Malaysia to the Board; • The reviews 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; – Provisions of the Companies Act, 1965 and other legal and regulatory requirements; – Malaysian Financial Reporting Standards issued by the Malaysian Accounting Standards Board; • Reviewed and ensured corporate disclosure policies and procedures of the Group (as they pertain to accounting, audit and financial matters) comply with the disclosure requirements as set out in the MMLR; • Reviewed related party transactions to ensure compliance with the MMLR and the Group’s policies and procedures as well as the appropriateness of such transactions before recommending them to the Board for approval; and • Reviewed the procedures for securing the shareholders’ mandate for recurrent related party transactions. Internal Audit • Reviewed with the internal auditors, their audit plan for the financial year, ensuring that principal risk areas and key processes (identified by the Enterprise Risk Management department and Internal Audit department) were adequately identified and covered in the plan; • Reviewed the recommendations by the internal auditors, 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; • Reviewed the results of ad-hoc investigations performed by the internal auditors and the actions taken relating to those investigations; • Reviewed the adequacy of resources and the competencies of staff within the Internal Audit department to execute the audit plan, as well as the audit programmes used in the execution of the internal auditors’ work and the results of their work; • Reviewed the results of the internal assessment performed on the internal audit function; • Reviewed the results of the external assessment performed on the internal audit function; • Reviewed the performance of Internal Audit department staff; and • Reviewed the adequacy of the charter of the internal audit function. External Audit • Reviewed with the external auditors, their terms of engagement, proposed audit remuneration and the audit plan for the financial year to ensure that their scope of work adequately covers the activities of the Group; • Reviewed the results and issues arising from the external auditors’ review of the quarterly financial results and audit of the year-end financial statements and the resolution of issues highlighted in their report to the Committee; • Reviewed the independence, suitability, objectivity and cost effectiveness of the external auditors before recommending their re-appointment and remuneration to the Board; • Reviewed the level of compliance of the external auditors with the Maxis External Audit Independence policy; and • Obtained written assurance from the external auditors confirming that they are, and have been, independent throughout the conduct of the audit engagement. Employee Share Option Scheme • Verified the allocation of share options to be in compliance with the criteria disclosed to the employees of the Group and established pursuant to the Employee Share Option Scheme for the financial year. AUDIT COMMITTEE REPORT AS AT 31 DECEMBER 2013 Continued