Datasonic Group Berhad Annual Report 2021

DATASONIC GROUP BERHAD 72 (b) The External Auditors had provided written assurances to the Audit Committee that they had continuously comply with the relevant ethical requirements regarding professional independence with respect to the audited financial statements of accounts of the Group in accordance with their firm’s requirements, requirements of ISA 300: Planning an Audit Financial Statements and the Malaysian Institute of Accountants’ By-Laws (on Professional, Ethics, Conduct and Practice). The External Auditors also confirmed that the total fees paid including that of non-audit services rendered to the Group for the financial year under review did not impact their professional independence. (c) The Audit Committee had reviewed the summary of non-audit services rendered to the Group which comprised mainly recurring assignments of non-audit services in respect of tax compliance, review on corporate tax implication and incentive, review on SST and import duty implications, annual review of the Statement on Risk Management and Internal Control and the agreed-upon-procedures (i.e. certification of accounts for submission to licensing bodies). The Group has incurred a total of approximately RM214,000 for non-audit services representing around 47% of total fees. 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 teamwithemphasis 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’s 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 tandemwith the scopes, size and complexities of the audit assignments; and • Quality and timely communications and dealing of audit issues, recommendations and resolutions in an atmosphere of sound and professional relationship with the relevant personnel of the Group. AUDIT COMMITTEE REPORT