Datasonic Group Berhad Annual Report 2021

71 2021 ANNUAL REPORT 2. External Auditors a. In February 2021, reviewed and discussed the Audit Planning Memorandum of the External Auditors for the financial year ending 31 March 2021. This covers the engagement and reporting requirements, audit approach, areas of audit emphasis particularly in relation to the key audit matters, significant events during the year, group audit, reliance on internal audit, engagement team, reporting and deliverables, proposed audit fees and the new developments in accounting standards. b. In May 2021, reviewed and discussed the Audit Review Memorandum issued by the External Auditors in relation to the annual year-end audit, covering on significant audit findings, their evaluation of the system of internal controls and material deficiencies in internal controls as part of their auditing procedures, status of independence, communication with Audit Committee on major issues, summary of unadjusted differences and the expected opinion to be rendered by the auditors. c. In May 2021, reviewed and discussed the draft Audited Financial Statements of the Company and of the Group for the financial year ended 31 March 2021 and draft Annual Report 2021 which encompasses all relevant disclosure statements in line with MMLR before recommending the same to the Board for approval. d. In accordance with the External Auditors Assessment Policy and paragraph 15.21 of MMLR, the Audit Committee had in May 2021 undertook an annual assessment on the performance of the External Auditors focusing on issues of their suitability, objectivity and professional independencetogetherwiththeSenior Vice President of Finance and Management. The External Auditors’ Assessment Policy is available for reference on the Company’s website at www.datasonic.com.my. d (i):- A questionnaires checklist was used to determine the minimumperformance assessment procedures on the quality and effectiveness of the external audit functions for purposes of reaching the decision as to whether to recommend to the Board on the question of their re-appointment. Input and feedback were also obtained from the Management who had close contact and involvement with the external auditors throughout the financial year to assess on the level of professionalism conducted by the External Auditors in the undertaking of the annual audit. d (ii):- The assessment and evaluation processes covered the following areas:- i. Independence and objectivity (a) Reviewed and discussed on the professional independence of the External Auditors for the financial year ended 31 March 2021 which amongst others include assessment on the:- • External auditors firm with emphasis on key professionals assigned to the external audit team to ensure their independence and objectivity in fact and appearance; • The terms of the audit engagement and quality control partners on the issues of rotation requirements from the risks and best practice viewpoints; • Measures to keep track of evolving best standards and practices in areas relating to independence and ethical rules to ensure continuous compliance, of the same; and • Detailed list of non-audit services rendered by the external auditors firm and related fees together with the pertinent information on the nature of the services undertaken focusing on the potential impact of the professional independence. AUDIT COMMITTEE REPORT