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Datasonic Group Berhad
(Company No. 809759-X)
44
AUDIT COMMITTEE REPORT
(Continued)
A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31
MARCH 2016 (CONT’D)
1.
Financial Reporting (cont’d)
b.
Reviewedanddiscussed the quarterlyManagement Report andAccounts of theCompany
and of the Group as well as the unaudited quarterly consolidated financial results of the
announcements before recommending the same to the Board for approval and release
to Bursa Malaysia.
To uphold the integrity of information, the Chief Financial Officer and the Accountant
attended all Audit Committee meetings held throughout the financial year and the
Management provided assurances to the Audit Committee that appropriate accounting
policies had been adopted and applied consistently and that prudent judgements and
estimates had been followed in accordance with the appropriate accounting standards.
c.
Reviewed and discussedwith theManagement and the External Auditors on the adequacy
of processes and controls in place for an effective and reliable financial reporting and
disclosures in support of the integrity of financial reporting issued by the Group.
d.
Reviewed and discussed with the Management and the External Auditors on the
appropriateness of bases and relevant documentations as evidence in support of the
recoverability and fair valuation of major assets pertaining to projects-in-progress, accrued
income and development expenditures.
2.
External Auditors
a.
In February 2016, reviewed and discussed the Audit PlanningMemorandumof the External
Auditors for the financial year ended 31 March 2016. This covers the audit approach,
significant events, key areas of audit emphasis, proposed audit fees and non-audit
services fees and the updates of accounting standards as well as other regulatory issues
of significance, as appropriate.
b.
In May 2016, reviewed and discussed the Audit Review Memorandum issued by the
External Auditors upon completion of the annual year-end audit, covering on significant
audit findings, deficiencies in internal controls, status on progress of audit, adherence
to professional independence, communication with Audit Committee on major issues,
summary of unadjusted differences and the expected opinion to be rendered by the
auditors.
c.
In February and May 2016, assessed and evaluated the performance of the External
Auditors for its re-appointment as auditors of the Company with the assistance of the
Chief Financial Officer and Management. The assessment and evaluation covered the
following areas:-
i.
Independence
(a) Reviewed and discussed on the question of professional independence of
the External Auditors for the financial year ended 31 March 2016. The External
Auditors had substantiated on this important issue of independence with written
assurances of their continuous compliance with the relevant ethical principles
in accordance with the International Federation of Accountants’ Code of
Ethics for Professional Accountants and the Malaysian Institute of Accountants’
By-Laws (on Professional Ethics, Conduct and Practice).