Maxis Berhad | Annual Report 2013

OVERVIEW OUR BUSINESS STRATEGIC REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS Maxis Berhad Annual Report 2013 OTHER INFORMATION 61 Others • Reviewed with Management, the quarterly status reports on relevant new laws and regulations, material litigation, contingencies and claims, and regulatory; • Reviewed the Report of the Audit Committee, the Statement on Risk Management and Internal Control and the Statement on Corporate Governance prior to their inclusion in the Company’s Annual Report; • Reviewed the adequacy of the terms of reference of the Committee; and • Conducted a self-assessment exercise to evaluate the Committee’s overall effectiveness in discharging its responsibilities and reported the results of the self-assessment to the Board. TRAINING The training attended by the Committee members during the financial year is reported under the Statement on Corporate Governance on page 58. 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 internal audit function adopts a risk-based audit methodology, which is aligned with the risks of the Group to ensure that the relevant controls addressing those risks are reviewed on a timely basis. The activities carried out by the Internal Audit department include among others, the review of the adequacy and effectiveness of risk management and the system of internal controls, compliance with established rules, guidelines, laws and regulations, reliability and integrity of information and the means of safeguarding assets. Such reviews are performed with a view to making recommendations to further improve existing controls and processes. On a quarterly basis, the Internal Audit department monitors and reports to the Committee the implementation of recommendations by Management to ensure all key risks are properly addressed. 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 major internal audit activities undertaken during the year are as follows: • Reviewed the adequacy and effectiveness of critical processes, IT systems and network elements; • Reviewed compliance with established policies and procedures and statutory requirements; • Recommended improvements and enhancements to the existing system of internal control, risk management and governance processes; • Carried out ad-hoc assignments and investigations requested by the Committee and/or Management; • Followed-up on the implementation of recommendations by Management to ensure all key risks are addressed; and • Developed a risk-based annual audit plan. The total costs incurred for the internal audit function for the financial year ended 31 December 2013 amounted to RM4.8 million (2012: RM5.1 million), which included the cost of co-sourcing activities amounting to RM0 (2012: RM15,900). 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.