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GOVERNANCE
Axiata Group Berhad | Annual Report 2016
093
The BAC had on 16 January 2016, reviewed the re-appointment of 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, and 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 reasons 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.
Audit Fees
Audit Related
Fees
Tax and Tax
Related Fees
Other Non-
Audit Fees
34%
2%
15%
37%
46%
15%
2%
49%
Details of statutory audit, audit-related and non-audit fees paid/payable in
2016 to the external auditors are set out below:-
Group
Company
RM'000
RM'000
Audit fees:
- PricewaterhouseCoopers Malaysia
(PwCM)
3,742
2,113
- Member firm of PwC International
Limited (PwCI)*
4,667
-
- Others
147
-
Audit related fees
1
- PwCM and PwCI
3,914
2,651
12,470
4,764
Other fees paid to PwCM and PwCI:
- Tax and tax related services
2
581
101
- Other non-audit services
3
12,354
884
25,405
5,749
*
Separate and independent legal entity from PwCM
1
Fees incurred in connection with performance of quarterly reviews, review of
purchase price allocation, 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 mainly incurred by a foreign entity
Group
Company