Datasonic Group Berhad 70 Audit Committee Report Adequacy and appropriateness of audit scopes, planning and conduct of work in line with the related risks and internationally best practices; Fairness and reasonableness of audit fees in tandem with the scopes, size and complexities of the audit assignments; Quality and timely communication and dealing of audit issues, recommendations and resolutions in an atmosphere of sound and professional relationship between the external auditors and the relevant personnel of the Group. iii. Further, the Management confirmed that the external auditors had:- (a) Maintained active and fruitful engagements and communications with the relevant Management personnel in the undertaking of the audit; (b) Substantiated the proposed audit fees as competitive and reasonable based on the complexities, sizeable volume of transactions and time spent on the audit undertakings. With reference to the meetings held with the external auditors, the Audit Committee was satisfied with the extent of communication and interaction with the audit engagement partner and the audit team, which clearly demonstrated their unquestionable independence, objectivity and professionalism. The outcome of the performance assessment supports the Audit Committee’s recommendation to the Board for reappointment of Crowe Malaysia PLT as the external auditors of the Company for the ensuing year. The Board at its meeting in May 2022 was satisfied with the effective assessment procedures performed and reported by the Audit Committee. Accordingly, the Board approved the Audit Committee’s recommendation to reappoint Messrs Crowe Malaysia PLT, subject to the shareholders’ approval to be sought at the forthcoming Annual General Meeting. e. With reference to the MIA Circular No. 25/2018: Change in Partner Rotation Period, the lead engagement partner and quality control review partner for the financial statements of Datasonic Group will be subject to a seven-year rotation with a three-year cooling-off period. The audit engagement partner and quality control review partner were appointed in 2021 and 2019 respectively and will be due for rotation in 2028 and 2026 respectively. f. Reviewed and discussed the progress of the implementation and assessment of new development of accounting standards applicable and adopted by the Group, details of which are reflected in the financial statements of accounts incorporated in the Annual Report. The adoption of the new accounting standards mainly are not expected to have material impact on the financial statements of accounts of the Group and of the Company, as stated therein. g. Reviewed the Statement on Risk Management and Internal Control for the financial year ended 31 March 2022 issued by the Company together with the report extended by the external auditors in accordance with the Audit and Assurance Practice Guide 3 (“AAPG 3”): Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control issued by MIA and is included in this Annual Report. h. For the year ended 31 March 2022, the Audit Committee held private meetings with the external auditors without the presence of the Executive Directors and the Senior Management. There were no significant unfavourable points raised by the external auditors that warranted the attention of the Audit Committee and the Senior Management. 3. Internal Auditors a. Reviewed and discussed the Internal Audit Reports, which consist of the audit findings, recommendations and the corrective actions agreed and committed by the Management that will ensure all key risks are addressed on a timely basis with mitigating controls in place. There were 17 Internal Audit Reports issued by the Internal Audit Department (“IAD”) for the financial year ended 31 March 2022, which were aligned with the Audit Planning Memorandum approved by the Audit Committee.
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