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Datasonic Group Berhad
(Company No. 809759-X)
45
AUDIT COMMITTEE REPORT
(Continued)
A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31
MARCH 2016 (CONT’D)
2.
External Auditors (cont’d)
c.
i.
Independence (cont’d)
(b) The Audit Committee had reviewed and discussed the summary of non-audit
services rendered to the Group as presented with details on the nature of
assignments undertaken and the related fees in theAudit ReviewMemorandum.
The non-audit services provided for the financial year ended 31 March 2016
were in respect of tax compliance services, GST advisory services and the
annual review of the Statement on Internal Control and Risk Management.
TheGroup has incurreda total of approximately RM140,000 for non-audit services
representing around 47% of total fees. The nature of the non-audit assignments
conducted by the External Auditors together with the related fees were critically
reviewed by the Audit Committee from the point of view of conflict of interest
and reasonableness. It was concluded by the Audit Committee that the fees
charged by the auditors were fair and reasonable commensurate with the
complexity of the subject matter of the assignments and that the services
rendered would not impair on the aspect of independence and objectivity
of the auditors.
ii.
Suitability and performance
In May 2016, the Audit Committee had assessed and evaluated the performance
of the External Auditors based on the following guidelines:-
• Calibre of the external audit firm of international status
• Quality of processes and performance of audit
• Audit teamwith emphasis on the competencies, qualifications and experiences
of the Engagement Partner, Concurring Partner, Audit Manager and Audit
Senior taking into consideration on the matter of familiarities with DGB’s IT
industry and operations
• Audit scope and planning of work in line with the related risks
• Fairness and reasonableness of audit fees comparisons
• Audit communications of issues and recommendations
Additionally, the Audit Committee had also taken the following criteria into
consideration in assessing and evaluating on the performance of the External
Auditors, inter alia, focusing on:-
• Competencies
• Conduct of audit
• Engagement Partner’s involvement
• Concurring Partner’s involvement
• Professional working relationship between the Management and the Auditors