Overview
Our
Business
Strategic
Review
Corporate
Governance
Financial
Statements
Other
Information
71
Maxis Berhad
Annual Report 2014
2. Audit Committee
The Audit Committee comprises only non-executive members of the Board, the majority of whom are Independent Directors. The
current Audit Committee comprises members who bring with them a wealth of knowledge, expertise and experience from different
industries and backgrounds. 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, as well as legal and regulatory requirements in addition to 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
65 to 68.
3. Internal Audit
The Internal Audit department continues to independently, objectively and regularly review key processes, check compliance with
policies/procedures, 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 Senior Management 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’s function, 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 65 to 68.
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 as well as 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 and on an annual basis. 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 contents
of the Code.
Statement on
Risk Management and Internal Control
