Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 72 A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 (cont’d) 2. External Auditors (Cont’d) d(ii) (Cont’d):- ii. Performance, suitability and competencies The Audit Committee had assessed and evaluated the performance, suitability and competencies of the External Auditors based on the following guidelines and criterion:- • Calibre of the external audit firm of international status, size and resources to conduct effective and constructive audits of listed issuers; • Quality of processes and performance audit procedures which cover quality control, the approach to seek and assess management representations, the approach to audit judgments and understanding of key issues and intricacies of business operations, the bases and extent of reliance External Auditors place on Management as well as the performance targets’ achievement of quality audits (i.e. audit scopes, audit plan, timing, etc.); • Audit team with emphasis on the competencies, qualifications and experiences of the Engagement Partner, Quality Review Partner, Audit Managers and Audit Senior taking into consideration on the matter of familiarities with the Group industry and complex operations; • 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 and size of the audit assignments; and • Quality and timely communications and dealing of of audit issues, recommendations and resolutions in an atmosphere of sound and professional relationship with the relevant personnel of the Group. d(iii):- Further, the Management had confirmed that the External Auditors had:- i. Maintained active and fruitful engagement and communications with relevant Management personnel in the undertaking of the audits; and ii. 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 on the extent of communication and interaction with the Audit Engagement Partner and the engagement 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 re-appointment of Messrs Crowe Malaysia PLT as the External Auditors of the Company for the ensuing year. The Board at its meeting in June 2020 was satisfied with the effective assessment procedures performed and reported by the Audit Committee. Accordingly, the Board approved the Audit Committee’s recommendation to re-appoint Messrs CroweMalaysia PLT, subject to the shareholders’ approval to be sought at the forthcoming Annual General Meeting. Audit Committee Report (Cont’d)