ANNUAL REPORT 2025 98 GOVERNANCE THE PROCESS OF THE AUDIT COMMITTEE (CONT’D) A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2025 (CONT’D) 2. External Auditors (Cont’d) 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 NexG Berhad (formerly known as Datasonic Group Berhad) 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 2025 respectively and will be due for rotation in 2028 and 2032 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 2025 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 included in the Annual Report issued by MIA. h. For the financial year ended 31 March 2025, 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 which warranted the attention of the Audit Committee and of the Senior Management. 3. Internal Auditors a. Reviewed and discussed the Internal Audit Reports which consists of the audit observations, recommendations and the corrective actions agreed and committed by the Management which will ensure all key risks are addressed on a timely basis with mitigating controls in place. There were nine (9) Internal Audit Reports issued by the Corporate Assurance Department (“CAD”) for the financial year ended 31 March 2025 which aligned with the Annual Internal Audit Plan approved by the Audit Committee. The audit observations are predominantly highlighted and discussed to improve the overall effectiveness of internal control system. The Internal Audit Reports were also shared and reviewed by the External Auditors in their audit planning purpose for effective co-ordination and consideration on the work covered between Internal and External Auditors functions as well as to determine and guide their audit strategies and procedures. b. Reviewed the performance, progress and activities of the Internal Audit functions on quarterly basis which covered the following aspects: - i. The status of completion of planned audit assignments and other compliance work as per the approved Annual Internal Audit Plan; ii. Modifications to the approved Annual Internal Audit Plan, if any, to cater for ad-hoc audit assignments requested by the Management/Executive Committee and/or Audit Committee/Board or as a result of consequential changes in the business operations and corporate development of the Group; iii. Adequacy of resources, skills and competencies of IA personnel. To ensure a mixture of skilled and competent auditors in the CAD, the Audit Committee also reviewed the applicable training and development programme attended by IA personnel as well as continuously encourage IA personnel to pursue for professional certification programmes available for internal auditors and IT auditors. iv. Significant matters/issues/challenges faced by CAD in the conduct of audit fieldwork, and in this connection, the Audit Committee requested CAD to put forth proposed solutions and recommendations to address the issues/challenges encountered with the view to improve a more effective undertaking of audit assignments. v. The man-hours and costs incurred by CAD in discharging its roles and responsibilities within approved man-hours budget and costs budget. Audit Committee Report (Cont’d)
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