Relationship with Auditors
The BAC manages the relationship with its external auditors on behalf of the
Board. The BAC considers the reappointment, remuneration and terms of
engagement of the external auditors annually. The review procedures covers
the independence and service level of the External Auditors, which amongst
others, include reviewing the External Auditors’ performance and quality of
work, timeliness of service deliverables, non-audit services provided and the
Engagement Partner’s and the Partner’s rotation.
The BAC had on 16 January 2016, reviewed the re-appointment of
PricewaterhouseCoopers (PwC) based on the following criteria before
making their recommendation:-
i)
Level of knowledge, capabilities, experience and quality of work;
ii) Level of engagement with the Chairman, BAC;
iii) Ability to provide constructive observations, implications and
recommendations in areas requiring improvements;
iv) Adequacy in audit coverage, effectiveness in planning and conduct of
audit;
v) Ability to perform audit work within agreed timeframe;
vi) Non-audit services rendered by the External Auditor does not impede
independence;
vii) Succession plan of partner-in-charge and rotation of audit partner is
evident; and
viii) Comprehensive audit plan addressing company/industry specific
objectives, geographical coverage, level of resources and audit tests
with specialist input on tax and regulations.
In safeguarding and supporting the external auditor’s independence and
objectivity, Axiata has determined policies to restrict the type of non-audit
services that can be provided by external auditors of the Group and the
approval process related to them. Under these policies and guidelines, non-
audit services can be offered by external auditors of the Group if there are
clear efficiencies and value-added benefits to the Group and a detailed
review of non-audit fees paid to the external auditors is undertaken by
the BAC on a quarterly basis. These procedures are in place to ensure that
neither their independence nor their objectivity is put at risk, and steps are
taken to ensure that this does not impede the external auditors audit works.
The BAC remains confident that the objectivity and independence of the
external auditors are not in any way impaired by reason of the non-audit
services provided to the Group.
The auditors of the Company, PwC, annually confirms to the BAC their
independence to the Group within the meaning of the provisions of the Bye-
Laws on Professional Independence of the Malaysian Institute of Accountants
and PwC’s firm’s requirements. PwC, having reviewed the non-audit services
provided to the Group during the financial year 2015 in accordance with the
independence requirements and, to the best of their knowledge, are not
aware of any non-audit services that had compromised their independence
as external auditors of the Group.
Details of statutory audit, audit-related and non-audit fees paid/payable in
2015 to the external auditors are set out below:-
Fees paid/payable to PwC
RM’000
Audit Fees
• PwCM
2,525
• Member firm of PwC International Limited (PwCI)
3,656
• Others
60
Audit Related Fees
1
• PwCM and member firm of PwCI
6,438
12,679
Other fees paid to PwCM and member firm of PwCI
Tax and tax related services
2
1,065
Other non-audit services
3
4,265
18,009
1
Fees incurred in connection with performance of quarterly reviews, agreed-upon
procedures and regulatory compliance
2
Fees incurred for assisting the Group in connection with tax compliance and
advisory services
3
Fees incurred primarily in relation to due diligence on potential acquisitions, project
management and other advisory services
Audit Fees
Audit Related Fees
Tax and Tax Related Fees
Other Non-Audit Fees
34.65%
35.75%
5.92%
23.68%
axiata group berhad | annual report 2015
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