Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 86 KEY ELEMENTS OF THE INTERNAL CONTROL SYSTEMS OF THE GROUP (CONT’D) MONITORING (CONT’D) 4. Group Legal Department The in-house Legal Department was established in July 2019 as part of the Group’s effort to strengthen the Group’s commitment to comply with applicable laws and regulations. The Legal Department amongst others is tasked to monitor and improve the internal processes and practices of contractual formulation and review in order to minimise its associated risks towards the Group’s business operations and activities. 5. Continuous Human Capital Development and Training Group Human Capital Development Department carries out a training needs analysis/identification exercise on employees’ performance and competencies in order to determine the current competency level of individual employees against the required competency level. The outcomes from the exercise will be used to determine the overall type and scopes of training and development programmes that need to be attended by each individual employee to meet the required competencies, skills and attitude to carry out their respective job roles in achieving the Group’s objectives. The training and development programmes for the Group’s employees are planned and executed on an annual basis. 6. Continuous Compliance Review The Management together with the respective Project Directors and Heads of Department continuously perform review on the compliance level in regard to the contractual obligations as well as the terms and conditions imposed on certifications and licenses granted to the Group. The list of certifications and licenses granted to the Group are available in the Sustainability Statement included in this Annual Report. REVIEW OF THIS STATEMENT BY EXTERNAL AUDITORS The External Auditors have reviewed this Statement on Risk Management and Internal Control pursuant to the scope set out in Audit and Assurance Practice Guide (“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 the Malaysian Institute of Accountants (“MIA”) . The External Auditors have opined to the Board that nothing has come to their attention that causes them to believe the statement is inconsistent with their understanding of the processes adopted by the Board in reviewing the adequacy and effectiveness of the risk management and internal control system of the Group in all material aspects in accordance with the disclosure required by paragraph 41 and 42 on the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers . AAPG3 does not require the External Auditors to consider whether the Directors’ Statement on Risk Management and Internal Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk management and internal control system. The External Auditors are also not required to consider whether the processes described to deal with material internal control aspects of any significant problems disclosed in the Annual Report will, in fact, remedy the problems. Statement on Risk Management and Internal Control (Cont’d)