Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 75 A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2020 (cont’d) 4. Corporate Governance and Compliance a. Reviewed and published the annual report of the Companywhich encompasses all relevant disclosure statements of corporate governance as well as required documentations as set out in Part A of Appendix 9C of the MMLR. b. Reviewed the revised and proposed amendments to theWhistleblower Policy before recommending the same to the Board for approval. c. Reviewed with the assistance of the IAD on a quarterly basis to determine the presence of any related party transaction to ensure compliance with the MMLR of Bursa Malaysia and the internal procedures in place, remained relevant. d. Discussed and noted the updates of newstandards/regulatory requirements issued by the regulatory, statutory and professional bodies and relevant business news articles published by the mass media considered to be of interests to Audit Committee/Board members. B. INTERNAL AUDIT department The IAD is headed by Pn. NorreenMohd Salimwho is a member ofMalaysian Institute ofAccountants (“MIA”) and Institute of Internal Auditors (“IIA”). In compliance with paragraph 15.27 of the MMLR, the IAD reports directly and functionally to the Audit Committee on the adequacy and effectiveness of the internal control systems. The IAD conduct its internal audit activities in accordance with the International Standards for Professional Practices of Internal Auditing . The purpose, authority and responsibility as well as the scopes of work of the IAD are outlined in the approved Internal Audit Charter. To ensure that the responsibilities of IAD are fully discharged in accordance with the abovementioned standard and its approved charter, the Audit Committee reviews the adequacy of the scopes and resources of the IAD as well as the competency and experience of the internal auditor professionals. The activities of the IAD for the financial year ended 31 March 2020 were carried out in accordance with the Audit Planning Memorandum which has been approved by the Audit Committee. In order to determine the significant auditees and related auditable areas for the planned audit assignments, IAD had applied a risk-based audit approach in which all possible risk factors identified were assessed using high-level likelihood and consequence rating assessment and populated into the Likelihood and Consequence Matrix. The possible risk factors of the Group were compiled from the following sources:- a. Observation and risks identified from the previous internal audit assignments; b. Observation, risks and concerns highlighted by the Audit Committee and Board of Directors; c. Discussion and input from the Risk Facilitators of the Group as well as their risk registers and reports/ relevant documentations; d. Discussion with the Executive Committee, key Management personnel, Heads of Department and other risk owners, as applicable; Audit Committee Report (Cont’d)