Page 120 - XL Axiata Integrated Anual Report 2020 ENG

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2020 Integrated Annual Report
CORPORATE GOVERNANCE
Board of Audit Committee Activity Report in 2020
During 2020, the BAC has carried out activities including reporting on the following matters quarterly in accordance with the duties and responsibilities of the BAC in the Terms of Reference:
• Review of Compliance with the Applicable Laws and Regulations
The Board of Audit Committee reviewed XL Axiata’s Management’s compliance with the applicable laws and regulations. The review is performed through compliance self-assessment by Management. Based on the review, the Board of Audit Committee did not find any non-compliance issue with the applicable laws and regulations by Management with respect to the regulations promulgated by OJK, Indonesia Stock Exchange, and other laws/regulations relevant with XL Axiata’s business activities.
The Board of Audit Committee further noted that management continued to exert efforts to implement good corporate governance in 2020.
• Review of Financial Results
Based on the independent auditor’s review on XL Axiata’s financial results and representation made by Board of Directors, the Board of Audit Committee concluded that the annual consolidated financial statements were prepared in accordance with Indonesian Generally Accepted Accounting Principles. The Board of Audit Committee recommended to the Board of Directors, through Board of Commissioners, that the audited financial statements for the year ended December 31, 2020 to be included in XL Axiata’s Annual Report to Shareholders and filed to OJK.
• Review of Internal Control and Risk Assessment
The Board of Audit Committee reviewed and reported adequacy, effectiveness and reliability of internal control system based on XL Axiata’s management’s self-assessment. The Board of Audit Committee also reviewed Annual Internal Control Assurance Letter submitted to the Board of Audit Committee. For this evaluation process, XL Axiata adopted Committee of the Sponsoring Organizations of the Treadway Commission (“COSO”) Internal Control Integrated Framework.
Based on the works and reports of Audit Division, independent auditor, and XL Axiata’s management, the Board of Audit Committee believes that XL Axiata’s internal control system are adequate and at acceptable level for XL Axiata’s business environment. The Board of Audit Committee also emphasized that along with the changing business environment
and arising new problems, risk management and internal control framework needs to be continuously improved.
• Review on Independence of External Auditor XL Axiata
The Board of Audit Committee reviewed independence of Kantor Akuntan Publik Tanudiredja, Wibisana, Rintis & Rekan (a member of the PricewaterhouseCoopers networks of firms), and obtained confirmation from Kantor Akuntan Publik Tanudiredja, Wibisana, Rintis & Rekan (a member of the PricewaterhouseCoopers networks of firms) that they worked independently and did not have conflict of interests in auditing XL Axiata’s financial statements.
• Review on the Implementation of Audit Service Delivery on XL Axiata Annual Financial Statement by External Auditor The Board of Audit Committee evaluated the implementation of audit service delivery of the Company’s annual financial statement by Kantor Akuntan Publik Tanudiredja, Wibisana, Rintis & Rekan (a member of the PricewaterhouseCoopers networks of firms), that covers the conformity
of audit implementation with the applicable auditing standard, the adequacy of fieldwork period, the assessment of audit scope coverage and adequacy of audit sampling, and recommendation for improvement provided by the external auditor.
• Review on the Implementation of Non- Assurance Service by External Auditor The Board of Audit Committee has reviewed and approved the non-assurance services conducted by several companies affiliated with the Kantor Akuntan Publik Tanudiredja, Wibisana, Rintis & Rekan (a member of the PricewaterhouseCoopers networks of firms) as external auditor, that include fee of non-assurance services, scope of work, potential conflict of interest, and appropriate safeguarding in accordance to the company policy.
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