Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 73 A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 (cont’d) 2. External Auditors (Cont’d) e. With reference to the MIA Circular No. 25/2018: Change in Partner Rotation Period , the Audit Engagement Partner and Quality Control Review Partner for the financial statements of Datasonic Group 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 2018 and 2019 respectively and will be due for rotation in 2025 and 2026 respectively. f. Reviewed and discussed the progress of the implementation and assessment of new financial reporting standards adopted by the Group, details of which are reflected in the financial statements of accounts incorporated in theAnnual Report. The adoption of the newfinancial reporting standards mainly are not expected to have material impact on the financial statements of accounts of the Group and of the Company. g. Reviewed the Statement on Risk Management and Internal Control for the financial year ended 31 March 2020 issued by the Company together with the report issued 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 year ended 31 March 2020, 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 findings, 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 15 Internal Audit Reports issued by the Internal Audit Department (“IAD”) for the financial year ended 31 March 2020 which were aligned to the Audit Planning Memorandum which was approved by the Audit Committee. The selected key audit areas for the financial year ended 31 March 2020 which constituted the subject matters of the audit assignments carried out by the IAD were as follows:- i. Finance and Accounting ii. Procurement and Contract Management iii. Management Information System iv. Project Management focusing on budgetary controls processes v. Insurance Management vi. Manufacturing and Personalisation Production related processes The audit findings predominantly related to normal operational shortcomings of lapses of controls in the 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 auditor functions as well as to determine and guide their audit strategies and procedures. Audit Committee Report (Cont’d)