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AUDIT COMMITTEE
REPORT
On 26 July 2017, GIAD confirmed its organisational independence to the AC, where the Group Head, GIAD and all the internal auditors had
signed the Annual Code of Ethics and Conflict of Interest Declaration for the financial year that they were and had been independent, objective
and in compliance with the Code of Ethics and Conflict of Interest as per IPPF in carrying out their duties for the financial year.
The AC reviews and approves the GIAD and IADs in other AOCs human resource requirements to ensure the function is adequately resourced
with competent and proficient internal auditors. The total operational costs of the GIAD and IADs in other AOCs for 2017 was RM3,393,479,
as shown below:
Location
Internal Audit Cost (RM)
Malaysia
2,198,484
Other AOC
1,194,995
Total
3,393,479
INTERNAL AUDITACTIVITIES DURING THE FINANCIAL YEAR
The GIAD implements a risk-based methodology in establishing its strategic and annual audit plan which determines the areas or units to be
audited. During the financial year, the AC reviewed, challenged and approved the audit plans for the GIAD and the respective IADs. In doing so,
the AC ensured, among others, consistency in the audit methodology deployed, as well as robustness in the audit planning process.
The GIAD continues its commitment to equip its internal auditors with adequate knowledge and proficiency. About RM10,310 was spent on
training in the areas of auditing skills, technical skills and personal development. As at 31 December 2017, the average training days attended
by each staff is four (4) days.
Further information on the resources, objectivity and independence of the Group Head, GIAD and internal auditors are provided in the Corporate
Governance Report in accordance with Practice 10.2 of the MCCG.
During the financial year, audit reviews were conducted based on the internal audit plan approved by the AC. The GIAD and IADs in other AOCs
completed and reported on 92 audit assignments covering 33 station audits, 20 corporate audits, 7 IT audits and 32 ad-hoc audits requested
by the Board, AC or Senior Management, and those which arose from reports pursuant to the Group’s Whistleblowing Policy. The areas
reviewed include government business development and charter, cabin crew, flight operations, ancillary safety, refund process, baggage
handling, customer experience, procurement, finance, contract management, ground operations, legal, engineering, sales and distribution
agent management, human resources, IT information security management, and IT systems. The Group Head, GIAD attended the AC meetings
to brief the AC on audit results and significant matters raised in the detailed GIAD report, including findings provided by the respective IADs.
Internal audit reports detailing audit findings and recommendations are provided to Management who respond on the actions to be taken.
Weekly follow up is done to monitor the progress of corrective actions until these are completed and closed off. The GCEO and CEO of AAB
are updated on the current status of open action plans. The IADs submit audit reports to the AC every quarter on the status of audit plans,
audit findings, and actions taken by Management on such findings. The IADs’ reports and follow up actions are also presented to the relevant
board committee and CEOs of the AOCs.
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AirAsia Group Berhad
REPORTS AND FINANCIAL STATEMENTS
196