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Unit 10: Government and Independent Financial Audit: Comparison

2. Objectivity, impartiality, prevention of any bias, conflict of interests or other influence, Notes
which may impede the realistic assessment of the auditor;
3. Professional competence – maintenance of sufficient necessary professional knowledge in
the sphere of commerce, accounting and tax legislation, International Accounting Standards
and International auditing standards, which are in force;

4. Confidentiality – protection of confidentiality of information on the activities of the
client undertaking, received as a result of the independent financial audit;
5. Professional behaviour – every auditor performs his/her professional work in a
manner corresponding to the good name of the audit profession and refrains from actions
which would impede the reputation of the profession;

6. Integrity – the auditor is honest, straightforward and objective while conducting the
audit;
7. Knowledge and implementation of professional standards – the auditor performs the
independent financial audit in compliance with the adopted professional standards and
the national legislation;

8. Responsibility – the statutory auditor is personally responsible for the opinion expressed;
a specialized audit firm is responsible for the audit opinion expressed on its behalf.



Caselet Magyar Telekom Telecommunications Public Limited
Company

n Y2011, the Audit Committee of Magyar Telekom Plc. (the “Company”) has performed
its work in accordance with the Articles of Association of the Company and the Rules
Iof Procedure of the Audit Committee, based on its accepted Working Schedule, and in
case of the occurrence of an extraordinary case, with a focus on its review without delay
and on the interest of making the appropriate decision. In Y2011, the Audit Committee
held meetings on 7 occasions, and furthermore, it made resolutions without holding a
meeting, via written (fax) voting on 13 occasions. The Audit Committee kept in continuous
contact with the Chief Financial Officer, the Chief Legal and Corporate Affairs Officer
(chief legal counsel) of the Company, the Head of Internal Audit, the Group Compliance
Officer, and the independent external auditor. The Audit Committee, in accordance with
its purpose, oversaw the integrity of the Company’s financial statements, the Company’s
compliance with legal and regulatory requirements falling within the scope of authorities
and responsibilities of the Audit Committee, the qualifications and independence of the
Company’s independent external auditor and the performance of the Company’s internal
audit function and independent external auditor. In the course of overseeing the work and
performance of the independent external auditor, the Audit Committee reviewed and
evaluated the Management Letter, and regularly monitored the services provided by the
independent external auditor and their fees. The independent external auditor, with the
general or specific pre-approval of the Audit Committee, provided audit and audit-related,
and various other services, salary and benefits survey and training services for the Company
in 2011. The Audit Committee reviewed the 2011 consolidated annual financial statements
prescribed by the Accounting Act according to the requirements of the International
Financial Reporting Standards (IFRS) as endorsed by the EU to be submitted to the General
Meeting by the Board of Directors, the proposal of the Board of Directors for their acceptance,
and listened to the relevant report of the independent external auditor.
Source: http://www.telekom.hu/static/sw/download/20120323_AC_jelentes_ENG.pdf

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