31
Datasonic Group Berhad
(Company No. 809759-X)
TERMS OF REFERENCE OF AUDIT COMMITTEE (CONT’D)
B.
Functions and Duties
The functions and duties of the Audit Committee are as follows:-
1.
To review and recommend for the Board’s approval, the Internal Audit Charter which defines
the independence, purpose, authority, scope and responsibility of the internal audit function
in the Company and the Group.
2.
To review all reports and details concerning the following and report to the Board:-
a) Reports and other updates by the External Auditors. These include the audit plan, audit
reports with details of corrective actions, evaluation of the system of internal control, audit
fees andmatters concerning the Auditors’ nomination, appointment and re-appointment,
the underlying reasons for resignation or dismissal as Auditors and the representation letter
to be signed by Management.
b) Reports and other updates by the Internal Auditors. These include the fulfilment of
the Internal Audit Department’s role in the evaluation of and its contributions to the
improvement of risk management process and control assurances and corporate
governance practices, compliance with internal auditing standards and relevant
corporation’s policies, independence status, adequacy and relevance of the scope and
functions, competency and resources, Internal Audit Reports and performance appraisal
of the staff of the Internal Audit Department including that of the senior staff concerning
appointment, resignation and progression.
c) The quarterly results and year-end financial statements prior to the approval by the Board,
focusing particularly on:-
i)
The Auditors’ report and whether it contains any qualification or reservations which
must be properly discussed and acted upon to remove the cause of the Auditors’
concerns.
ii)
Significant changes and adjustments in the preparation and presentation of the
financial statements of the Company and of the Group.
iii) Major changes in accounting policies, principles and practices.
iv) Material fluctuations in results and/or financial position as reflected in the financial
statements.
v) Significant variations in audit scope and approach.
vi) Significant commitments and contingent liabilities.
vii) Significant and unusual issues of transactions.
viii) Validity of going concern assumptions.
ix) Compliance with accounting standards, regulatory and other legal requirements.
d) The major findings of any investigation assignment and the management responses.
AUDIT COMMITTEE REPORT
(Cont’d)
