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AirAsia X Berhad • Annual Report 2014
Risk Management
• Reviewed the key risk profile for the Company.
• Reviewed and approved the progress report on risk management activities.
• Reviewed the Statement on Risk Management and Internal Control and AC Report for
inclusion in the 2014 Annual Report.
External Audit
• The AC reviewed PwC’s overall work plan and recommended to the Board through
the AC their remuneration and terms of engagement as external auditors and
considered in detail the results of the audit, PwC’s performance and independence
and the effectiveness of the overall audit process. The AC recommended PwC’s re-
appointment as auditor to the Board and this resolution will be put to shareholders at
the AGM.
• Reviewed updates on the introduction of Financial Reporting Standards and how they
will impact the Company and has monitored progress in meeting the new reporting
requirements.
• The AC was also updated by PwC on changes to the relevant guidelines on the
regulatory and statutory requirements.
• Deliberated and reported the results of the annual audit for recommendation to the
Board.
• Met with the external auditors without the presence of management to discuss any
matters that they may wish to present.
Related Party Transactions
• Reviewed the related party transactions entered into by the Company and its affiliates
in conformity to the established procedures in adherence to the MMLR of Bursa
Malaysia.
ESOS
• Annually, will verify the allocation options pursuant to the criteria disclosed to the
employees of the Company and established pursuant to the Employees’ Share Option
Scheme for each financial year.
AUDIT COMMITTEE REPORT
IA
AirAsia X has an in-house IA to assist the Board to oversee that Management has in place
a sound risk management, internal control and governance system. The IA maintains its
impartiality, proficiency and due professional care by having its plans and reports directly
under the purview of the AC.
The IA reports functionally to AC and administratively to the CEO.
The responsibilities of IA include:
• Review the systems of internal controls.
• Undertake regular and systematic reviews of the systems of internal controls, so as
to provide reasonable assurance that the systems continue to operate efficiently and
effectively.
• Implement risk based audit to establish the strategic and annual audit plan, the main
factor to determine areas or units to be audited.
• Review the adequacy of risk management, the strength and effectiveness of the
internal controls, compliance to both internal and statutory requirement, governance
and management efficiency, amongst others.
• Table to the management on any areas that require improvement and audit
recommendations for attention and further actions.
Management is to ensure that corrective actions are implemented within the required time
frame. The audit reports which provide the results of the audit conducted, as well as key
control issues and recommendations are highlighted and submitted to the AC for review
and execution.
AC reviews and approves the IA’s human resource requirements to ensure that the function
is adequately resourced with competent and proficient internal auditor. Total operational
costs of the IA department for 2014 were RM164,460.
