Annual Report 2023 87 PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) I. AC (CONT’D) Composition of AC (Cont’d) 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 The annual evaluation of the External Auditors provides 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 meeting with the External Auditors without the presence of the Executive Board members and Management to discuss audit activities and matters related to the Group. 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. The AC assessed the performance, suitability and independence of Messrs Crowe Malaysia PLT as External Auditors of the Company as well as reviewed the non-audit services provided by them for the financial year under review. This enable 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. The AC also received confirmation from Messrs Crowe Malaysia PLT that they will continuously comply with the relevant ethical requirements regarding professional independence with respect to the audit of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants and the Malaysian Institute of Accountants’ By-Laws (On Professional Ethics, Conduct and Practice). In May 2023, the Board approved the AC’s recommendation for the Company to seek the shareholders’ approval for the reappointment of Messrs Crowe Malaysia PLT as External Auditors of the Company at the forthcoming AGM. II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK Risk Management and Internal Controls The Risk Management Committee (“RMC”) of the Company comprises of three (3) members, two (2) of whom are Independent NonExecutive Directors and one (1) Non-Independent Non-Executive Director. The RMC was established to assist the Board in overseeing risk management framework and policies in order to manage the overall risk exposure of the Group. The Board is responsible for ensuring that risks and opportunities are identified on a timely basis to continuously safeguard the shareholders’ investment and the Group’s assets. The Board is assisted by the Risk Management Committee to perform continuous review and monitor on the adequacy and effectiveness of risk mitigation plans and internal control measures pertaining to the key risks. CORPORATE GOVERNANCE OVERVIEW STATEMENT
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