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Datasonic Group Berhad
(Company No. 809759-X)
54
Independent Reviews by Internal Audit Department
Internal Audit Department (“IAD”) performs regular reviews of the Group’s operations and system of
internal controls and evaluates the adequacy and effectiveness of the controls processes implemented
by process owners and Management. IAD adopts a risk-based audit approach in which the Likelihood
and Consequence Matrix (“LCM”) is used to determine the auditees and auditable areas. If necessary,
the auditable areas are modified periodically to reflect any change and development in prevailing risks
prioritisation and business concerns.
There were eight (8) Internal Audit Reports issued and reviewed by the Audit Committee throughout the
financial year in which the IAD has provided its recommendations to the Management to improve their
design and/or effectiveness where applicable. From the Internal Audit Reports issue, there were some
weaknesses and gaps in internal control identified but were not considered significant enough to be reported
in this Statement as none had materially impacted the business operations of the Group. Nevertheless,
remedial actions and corrective measures including monitoring have been or are being taken to address
the weaknesses noted.
Continuous Compliance Review
The Management together with the respective Project Directors continuously perform review on the
compliance level in regards to the terms and conditions imposed on all certifications and licenses granted
to the Group to mitigate or minimise any compliance risk (e.g. Printing Machine License from the Ministry
of Home Affairs, Company Registration Certificate from the Ministry of Finance (“MOF”), Bumiputera
Company Registration Certificate from the MOF, Grade G7 Contractor License from the Construction
Industry Development Board, Network Service Provider License and Network Facilities Provider License
from the Malaysian Communications and Multimedia Commission and Shariah Compliant).
REVIEW OF THIS STATEMENT BY EXTERNAL AUDITORS
Pursuant to Paragraph 15.23 of the MMLR of Bursa Malaysia, the External Auditors have reviewed this
Statement for inclusion into the Annual Report of the Group for the financial year ended 31 March 2016
and reported to the Board that nothing has come to their attention that causes them to believe that the
Statement on Risk Management and Internal Control intended to be included in the annual report is not
prepared, in all material respects, in accordance with the disclosures required by paragraphs 41 and 42
of the Guidelines to be set out, nor is factually inaccurate.
ASSURANCE FROM THE MANAGEMENT TO THE BOARD
For the financial year under review and up to the date the of issuance of this Statement, the Management
continues to monitor all major risks affecting the Group and the necessary measures to mitigate or minimise
themas well as continue to enhance the adequacy and effectiveness of the risk management and internal
control system of the Group mainly focusing on strategic, financial, operational and compliance aspect.
The Board can be assured that a process has been put in place to develop, nurture, maintain, assess,
scrutinise and improvise on its internal control and risk management initiatives to harness sustainability of
the business and the integrity of the financial statements. To the best of knowledge, nothing has come
to the attention of the Executive Directors and the Management which may render the financial results
presented and the information provided to be misleading in any material respect.
This Statement is made in accordance with the resolution of the Board of Directors passed on 27 May 2016.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
(Continued)