243 / 396
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF AIRASIA BERHAD
(INCORPORATED IN MALAYSIA)
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of AirAsia Berhad, which comprise the statements of financial position as at 31 December 2017 of
the Group and of the Company, and income statements, statements of comprehensive income, statements of changes in equity and statements
of cash flows of the Group and of the Company for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, as set out on pages 235 to 368.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company
as at 31 December 2017, and of their financial performance and their cash flows for the year then ended in accordance with Malaysian
Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our
responsibilities under those standards are further described in the
Auditors’ Responsibilities for the Audit of the Financial Statements
section
of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the
Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional
Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of
the Group and of the Company for the current year. These matters were addressed in the context of our audit of the financial statements of
the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the financial statements section of our report,
including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment
of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis of our audit opinion on the accompanying financial statements.
Recognition of revenue from passenger seat sales and sales in
advance
Our response
Refer to Note 4(a) to the financial statements for revenue and
statement of financial position for sales in advance.
Revenue from passenger seat sales represent 71% and 74% of the
total revenue of the Group and of the Company respectively, for
the year ended 31 December 2017.
The Group and the Company relies on an integrated information
technology system (including the flight reservation system) in
accounting for its passenger seat sales revenue. Such information
system processes large volumes of data which are individually
low value transactions.
Our audit sought to place a high level of reliance on the Group’s
and the Company’s information technology systems and key
controls which the management relies on in recording revenue
from passenger seats sales. As the flight reservation system is
managed by a third party vendor, we obtained and evaluated the
external auditors’ report on the operating effectiveness of the key
controls over the flight reservation system.
We involved our information technology specialists to test the
operating effectiveness of the automated controls of the other key
modules of the information technology system. We also tested
the non-automated controls in place to ensure completeness
and accuracy of revenue recognised, including timely updating of
approved changes to base fares and ancillary fares.
[ ]
229
AirAsia Berhad
REPORTS AND FINANCIAL STATEMENTS