Annual Report 2020

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 costs incurred by GIAD in discharging its functions and responsibilities in 2020 amounted to RM3,420,245 as compared to RM4,234,376 in 2019. Further information on the resources and the name and qualification of the Group Head, GIAD are provided in the CG Report in accordance with Practice 10.2 of the MCCG. INTERNAL AUDIT ACTIVITIES 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 our internal auditors with adequate knowledge and proficiency. Internal auditors attended in-house training in the areas of auditing skills, technical skills and personal development. Hence, there are no training costs involved. As at 31 December 2020, the average training days attended by each staff was 2 (two) 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 108 audit assignments, including ad-hoc requests, which were requested by the Board, AC or Senior Management, and those which arose from reports pursuant to the Group’s Whistleblowing Policy. The audits conducted covered a wide range of areas, which included key areas such as procurement, ground operations, engineering and its system, inflight ancillary, risk management, operational quality assurance, human resources, payroll system and process, ICT project and contract management, aviation security, cargo, safety, flight operations, sales and distribution, corporate finance and IT systems such as Google Big Query, Google Cloud Platform and Payment Gateway. The Group Head, GIAD together with Head of Corporate and Station Audit, Head of Fraud and Investigation Unit and Head of IT Audit 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 responds to 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 CEO of AAGB 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. GIAD digitalisation initiatives GIAD has embraced digitalisation aligned with the Group strategy with continuous improvement on the digitalisation initiatives and directions adopted in 2020. Audit CommitteeReport 150 AIRASIA GROUP BERHAD