Datasonic Group Berhad Annual Report 2021

DATASONIC GROUP BERHAD 74 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 13 Internal Audit Reports issued by the Internal Audit Department (“IAD”) for the financial year ended 31 March 2021 which were aligned to the Audit Planning Memorandum approved by the Audit Committee. The selected key audit areas for the financial year ended 31 March 2021 which constituted the subject matters of the audit assignments carried out by the IAD were as follows:- i. Finance and Accounting ii. Human Capital Development iii. Fixed Assets Management iv. Project Management v. Regional Personalisation Services vi. Production Operations vii. Plant Security 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. b. Reviewed the performance, progress and activities of the Internal Audit functions on quarterly basis which covered the following aspects:- i. The status of completion of planned audit assignments and other compliance work as per the approved Audit Planning Memorandum; ii. Modifications to the approved Audit Planning Memorandum, if any, to cater for ad-hoc audit assignments requested by the Management / Executive Committee and / or Audit Committee / Board or as a result of consequential changes in the business operations and corporate development of the Group; iii. Adequacy of resources, skills and competencies in regard to the Internal Audit professionals. For skills and competencies, the Audit Committee also reviewed the applicable training and development programme attended by IAD personnel as well as the continuing education programme of relevance to ensure that the IAD developed a mixture of skilled and competent auditors in the IAD; iv. Significant matters / issues / challenges faced by IAD in the conduct of audit fieldwork; and v. The man-hours and costs incurred by IAD in discharging its roles and responsibilities within approved man-hours budget and costs budget. AUDIT COMMITTEE REPORT