Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...

The BAC was also entrusted with the responsibility of overseeing the implementationof programmes relating to the enhancement of the Group’s information systems. Inaddition, it reviewed the effectiveness of the Group’s procurement process and maderecommendations for improvement.External AuditThe BAC reviewed the External Audit Plan, including the scope and the fee for the annualaudit and also had discussions with the External Auditors prior to the year-end audit todiscuss their audit approach and procedures, including matters relating to the scope ofthe audit.The BAC reviewed the results of the external audit and reported issues arising from theiraudits of the quarterly and annual financial statements, the management letter and interimreports issued by the External Auditors and the management responses thereto.As reported in last year’s Report, during the first quarter of 2010 in terms of the policyadopted by the Board to review the appointment of External Auditors every five years,the BAC called for request for proposals from the leading auditing firms in Sri Lanka forselection as the External Auditors. Three of the proposals were selected for detailedanalysis. Using internationally-recommended procedures and direct interviews, MessrsPricewaterhouseCoopers was selected.The independence and objectivity of the External Auditors were reviewed by the BAC,which held the view that the services outside the scope of the statutory audit provided bythe External Auditors have not impaired their independence.The BAC recommended to the Board that Messrs PricewaterhouseCoopers be reappointedas the External Auditors for the financial year 2011.Internal AuditThe BAC is strongly supported by the Group Internal Audit Division, which is headed by theGroup Chief Internal Auditor who reports directly to the BAC.Pursuant to the appointment of Mr. Lalith Fernando, the Group Chief Internal Auditor, as theGroup Financial Controller in 2009, Mr. Arjuna Bamberadeniya, was appointed as the ActingGroup Chief Internal Auditor from 1st December 2009 until 1st September 2010 when Mr. IzrinHashim was appointed as the Group Chief Internal Auditor.The Group Internal Audit Division has a dotted line relationship to the Axiata Group InternalAudit in order to leverage global best practices and lessons learnt through the Group’soperations.48Dialog Axiata PLCAnnual Report 2010 |Report of the Board Audit Committee