Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Axiata Group Berhad (242188-H) Annual Report 2012Board Audit Committee– The size of Axiata BAC’s membership is comparableto the others and the cumulative hours of BACmeetings in 2011 of 20 hours was comparable to theothers where the average period ranged from 15 to19 hours.Against the 2012 Audit Plan, a total of 124 internal auditassignments were completed at Corporate Centre and allOpCos. The areas of coverage included finance, sales,marketing, information and technology, billing, network,corporate governance, human resources, customerservice and procurement. The audit reports of theseassignments provided independent and objectiveassessment of the following:• adequacy, effectiveness and efficiency of the internalcontrol systems to manage operations and safeguardthe Group’s assets and shareholders’ value; and• adequacy and effectiveness of the risk managementoperations, governance and compliance functions toidentify, manage and address potential risks facingthe Group.The internal audit reports were issued to the managementfor their comments and to agree on action plans withdeadlines to complete the necessary preventive andcorrective actions. The reports were tabled at eachOpCo’s BAC and summary of the key findings to theBAC for due deliberation to ensure that the managementundertakes to carry out the agreed remedial actions.Members of the management were invited to the BACmeetings from time to time, where necessary, for furtherclarification purposes. Key audits that were completed in2012 include:• Network Planning• International Roaming• Product Customer Experience• Project Management• Billing Management• Infrastructure Sharing• Vendor Management of Critical Systems• Procurement• Managed Services• Contact Centre Management• On-line Charging System• Core Network Elements• SAP Application Controls• IP Network Management• Enterprise IT ManagementThe total cost incurred by AGIA in 2012, inclusive of allthe OpCos, was RM10.1 million. This represents a 16%increase from last year’s cost of RM8.7 million. Theincrease is mainly due to increased co-sourcing activitiesand salary/bonus payouts.There are a total of 45 internal auditors across theGroup whilst AGIA at Corporate Centre has five approvedheadcount and operates on a resource sharing basis withother OpCos’ Internal Audit Divisions. All the internalauditors have tertiary qualifications and the level ofexpertise and professionalism within AGIA at the end of2012 is as follows:Expertise CategoryPercentage oftotal auditorsFinance 29%IT/MIS 20%Network/Engineering 22%Marketing 12%General/Others 18%Professional CategoryPercentage oftotal auditorsProfessional Certification• CPA, ACCA, CA, CIMA 18%• Certified Internal Auditor (CIA) 11%• Certified IS Auditor (CISA) 27%• Internship of CPA, ACCA, CA,CIMA18%109