sUMMarY oF aCtiVities oF tHe BaC

·

Held three private meetings with the External

Auditors on 23 February 2010, 27 May 2010 and

during the FY10, the BAC discharged its functions

24 August 2010 without the presence of

and carried out its duties as set out in the Tor.

management and Internal Audit.

Key activities undertaken by the BAC include

·

Reviewed the performance of the External

the following:

Auditors and made recommendations to the

Board for their re-appointment and remuneration.

risks and Controls

·

An enterprise risk committee called `Axiata Risk

Financial reporting

Management Committee' was formed in 2010 to

·

Reviewed the Quarterly and Annual Financial

enhance the identification and management of

Statements including announcements, taking

existing and emerging major business risks within

into consideration the external audit findings

the Group. A revised enterprise risk management

framework, based on ISo 31000-2009, was also

and recommendations, and recommended

introduced in 2010 that will be further enhanced

them to the Board for their approval. The

in 2011 from learnings of 2010.

reviews, together with discussions with the

·

The Group's major business risks and remedial

external Auditors, were to ensure the financial

actions were reported and deliberated at the

reporting and disclosures are in compliance with

BAC each quarter; a summary of which was

the provisions of the Companies Act 1965,

reported to the Board.

Main Lr and applicable accounting and FrS

standards in Malaysia.

internal audit

·

Reviewed the cashflow assumptions and working

·

Reviewed and approved the Group Internal Audit

papers on a quarterly basis in order to determine

(GIA) Annual Business Plan inclusive of Budget

the recoverability of some of the major assets,

and resourcing plan. The Audit Plan was prepared

one of which led to the Idea impairment.

using a `risk-based' approach and ensures that

adequate and competent resources are available

annual reporting

to carry out the audit plan, especially in the

·

Reviewed and recommended Statement on

areas or entities with high risks.

Corporate Governance, Statement on Internal

·

Reviewed internal audit reports issued by GIA on

Control and the BAC report to the Board

the adequacy, effectiveness and efficiency of risk

for approval.

management, operational and compliance issues,

·

Reviewed on a quarterly basis the related party

and governance processes across the Group.

transactions entered into by Axiata pursuant to

·

Reviewed the adequacy, effectiveness and

shareholders mandate on rrPT procured at the

timeliness of actions taken by management to

18th AGM of the Company held on 22 June 2010

resolve material issues raised by the internal

and the reporting of these transactions in the

audit reports across the Group.

2010 Annual report.

·

Reviewed the effectiveness of internal audit

processes and the resources allocated to

others

the audits.

·

Reviewed and approved Axiata Audit Charter;

·

Assessed the performance of GIA against the

·

Reviewed status of resolution of external and

internal scorecard as approved by the BAC.

internal audit issues every quarter;

·

Reviewed current matters in relation to

external audit

compliance with legal, regulatory and statutory

·

Adopted a collaborative approach in working

requirements;

with the external Auditors.

·

Identi ed cases of control weaknesses for sharing

·

Reviewed and approved the External Audit Plan

of lessons learnt within the Group to avoid similar

including the scope and fee for the annual audit.

incidents; and

·

Reviewed the results of the external audit

and reported issues arising from their audits of

the quarterly and annual accounts, made

recommendations to the Board for the

implementation of remedial actions where

necessary.

pg 93

Strength in Diversity