AUDIT & RISK COMMITTEE REPORT
Internal Audit FuncƟon
Internal Audit acƟviƟes are carried out in-house by the Assurance Department. The Head of Assurance reports directly to the ARC and assists the CommiƩee in the discharge of its duƟes and
responsibiliƟes. The Assurance Department’s role is to provide independent and reasonable assurance on the adequacy, integrity and eīecƟveness of Digi’s overall system of internal control,
risk management and governance. The ARC determines the adequacy of the scope, funcƟons, competency and resources of the Assurance Department, which comprises 5 staī members as at
31 December 2014 and that it has the necessary authority to carry out its work.
The Assurance Department pracƟces adapƟve audiƟng, which provides the Ňexibility needed to address emerging current risks as well as potenƟal future risks. This allows Assurance to focus its
resources and skills on ensuring alignment with business strategy and goals, thus maintaining relevance and driving conƟnuous improvements within Digi.
As part of its acƟviƟes to ensure conƟnuous relevance to the business units and fulĮl the purpose of improving Digi’s overall system of internal control, risk management and governance, the
Assurance Department carried out its reviews based on the annual Assurance plan for 2014, which was developed using a risk-based approach and in line with Digi’s strategic ambiƟons. In 2014, the
Assurance Department conducted a wide range of audit assignments covering operaƟonal audits, IT and technical audits, and compliance with established procedures and regulatory requirements.
The Assurance Department also undertook special reviews and advisory services at the request of the ARC and/or Management over and above the planned reviews. Follow-up reviews were
performed on the implementaƟon of audit recommendaƟons and the status of implementaƟon was reported to the ARC quarterly.
The total costs incurred for the Assurance Department for 2014 was RM1,566,920.
Training
The training aƩended by the ARC members during the Įnancial year is reported under the Statement on Corporate Governance on pages 52 to 53.
The full Terms of Reference of ARC is set out on pages 67 to 69 of the Annual Report.
The ARC Report is made in accordance with the resoluƟon of the Board of Directors dated 11 March 2015.
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