Datasonic Group Berhad 72 Audit Committee Report 4. Corporate Governance and Compliance a. Reviewed and published the annual report of the Company, which encompasses all relevant disclosure statements of corporate governance and the required documentations as set out in Part A of Appendix 9C of the MMLR. b. Reviewed with the assistance of the Internal Audit Department on a quarterly basis to determine instances of any related party transaction for compliance with Bursa Listing Requirements and the internal procedures in place. c. Discussed and noted the updates of new standards/regulatory requirements issued by the regulatory, statutory and professional bodies and relevant business news articles published by the mass media considered to be of interests to the Audit Committee/Board members. d. Reviewed the implementation status of anticorruption anti-bribery exercise carried out by the Group to adopt the Ministerial Guidelines on Adequate Procedures to comply with the requirements set out under Section 17A of the MACC Act. B. INTERNAL AUDIT FUNCTION The Internal Audit Department (“IAD”) is headed by Puan Norreen Mohd Salim who is a member of Institute of Internal Auditors Malaysia (“IIAM”) and Malaysian Institute of Accountants (“MIA”). In compliance with paragraph 15.27 of the MMLR of Bursa Malaysia, the IA function reports directly and functionally to the Audit Committee on the adequacy and effectiveness of the internal control system. The purpose, authority and responsibility as well as the scopes of work of the IAD are outlined in the approved Internal Audit Charter. To ensure that the responsibilities of the IAD are fully discharged in accordance with the applicable professional standards and its approved charter, the Audit Committee reviews the adequacy of the scopes and resources of the IAD as well as the competency and experience of the IAD personnel. The activities of the IAD for the financial year ended 31 March 2022 were carried out in accordance with the Audit Planning Memorandum, which has been approved by the Audit Committee. The audit reviews performed covered the business operations units and support services departments focusing on the adequacy and effectiveness of internal controls, compliance with applicable requirements, obligations and regulations, reliability and integrity of financial information as well as adequacy of safeguarding of assets. In order to determine the significant auditees and related auditable areas for the planned audit assignments, the IAD had applied a riskbased audit approach in which all possible risk factors identified and compiled were assessed using high-level likelihood and consequence rating assessment and populated into the Likelihood and Consequence Matrix. The results of the audits performed by the IAD were reviewed by the Audit Committee. The Internal Audit Reports were also presented and discussed at the Group Management Committee Meetings with concentration on matters of disputable findings and audit recommendations/corrective measures for appropriate resolutions prior to the Audit Committee meetings. The relevant Management members were made responsible to ensure the committed corrective actions were implemented within the committed timeframes. The IAD conducted follow-up audits on the key findings to ensure that the corrective actions were implemented appropriately and as committed. As at May 2022, the IAD is staffed with six (6) personnel and all internal auditors possess tertiary qualifications with number of years of audit and work experience. The internal auditors are encouraged to continuously enhance their knowledge, skills and competencies through relevant professional audit certifications and always keep abreast of development in the profession and industry through continuous trainings and development activities appropriate to their respective levels. In order to maintain its independence and objectivity, the IAD has no operational responsibility and authority over the audited activities. The Audit Committee remained satisfied that the IAD had sufficient resources during the financial year to undertake its duties effectively and able to function independently. The total costs incurred by the IAD in discharging its roles and responsibilities for the working period in the financial year ended 31 March 2022 amounted to approximately RM530,000. This Report was made in accordance with the resolution of the Board of Directors passed on 31 May 2022.
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