Annual Report 2022 63 ABOUT US LEADERSHIP PERSPECTIVE SUSTAINABILITY GOVERNANCE FINANCIAL STATEMENTS Other Information Corporate Governance Overview Statement PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT I. AC Composition of AC The AC of the Company comprises four (4) members of whom three (3) are Independent Non-Executive Directors and one (1) is Non-Independent Non-Executive, in compliance with the requirements of Paragraphs 15.09 (1)(a) and (b) of the MMLR of Bursa Malaysia. In November 2021, the NRC reviewed the composition of the AC and recommended to the Board for approval the appointment of Encik Azrul bin Yahaya as an additional member of the AC. To ensure the overall effectiveness and independence of the AC, the positions of the Chairman of the Board and the Chairman of the AC are held by different persons. The AC is chaired by an Independent Non-Executive Director, Mr Yee Kim Shing @ Yew Kim Sing. Collectively, the AC members possess a wide range of necessary skills to discharge their duties and responsibilities. The AC as a whole is financially literate and is able to understand matters under the purview of the AC, including the financial reporting process. In May 2022, the AC reviewed and recommended to the Board for approval the revision to the Terms of Reference of the AC, which requires a former key audit partner of the Group to observe a cooling period of at least three (3) years before being appointed as a member of the AC. None of the AC members was former key audit partner of the Group. The Terms of Reference of the AC is available for reference on the Company’s website at www.datasonic. com.my. The composition and details of the activities carried out by the AC for the financial year under review are set out in the AC Report of this Annual Report. Financial Reporting Process The Board takes responsibility for providing a balanced and meaningful assessment of the Group’s financial performance and position primarily through the financial statements of the Company and of the Group, quarterly management report and accounts and quarterly financial results to Bursa Malaysia, Chairman’s Statement and Management Discussion and Analysis in the Annual Report. The Board is assisted by the AC and the Chief Financial Officer in overseeing and governing the Group’s financial reporting processes and the quality and integrity of its financial information. The Directors’ Responsibilities Statement in respect of the preparation of the Annual Audited Financial Statements is set out separately in this Annual Report. External Auditors and its Independence As one of its functions, the AC undertakes an annual assessment of the external auditors to gauge their performance, suitability and independence. Based on the results of this assessment, the AC make recommendation to the Board for their reappointment or termination, as applicable. The annual evaluation of the external auditors provide the AC with a disciplined approach for maintaining effective oversight of the external auditors’ performance. The objective of this External Auditors Assessment Policy is to outline the guidelines and procedures for the AC to review, assess and monitor the competency of the external auditors. During the financial year under review, the AC had private meetings with the external auditors without the presence of the Executive Board members and the Management. All of the AC members undertook continuous professional development to keep themselves abreast with the relevant developments in accounting and auditing standards, practices and rules. The External Auditors Assessment Policy is available for reference on the Company’s website at www.datasonic. com.my. In this regard, the AC assessed the performance, suitability and independence of Messrs Crowe Malaysia PLT as external auditors of the Company and reviewed the non-audit services provided by them for the financial year under review. This enabled the AC to determine that the nature of the non-audit services would not adversely impair the external auditors’ professional independence and that the related fees levied are fair and realistic.
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