Datasonic Group Berhad Annual Report 2021

DATASONIC GROUP BERHAD 76 B. INTERNAL AUDIT FUNCTION The IAD is headed by Puan Norreen binti Mohd Salim who is a member of Institute of Internal Auditors (“IIA”) and Malaysian Institute of Accountants (“MIA”). In compliance with paragraph 15.27 of Bursa Listing Requirements, the IAD reports directly and functionally to the Audit Committee on the adequacy and effectiveness of the internal control systems. The purpose, authority and responsibility as well as the scopes of work of the Internal Audit Function are outlined in the approved Internal Audit Charter. To ensure that the responsibilities of IAD are fully discharged in accordance with the applicable professional standards and its approved charter, the Audit Committee reviews the adequacy of the scopes and resources of the IAD function as well as the competency and experience of the IAD personnel. The activities of the IAD for the financial year ended 31 March 2021 were carried out in accordance with the Audit Planning Memorandum which has been approved by the Audit Committee. The audit reviews performed covered the business operations units and support services departments focusing on the adequacy and effectiveness of internal controls, compliance with applicable requirements, obligations and regulations, reliability and integrity of information as well as adequacy of safeguarding of assets. 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 Board Audit Committee and Board of Directors; c. Discussion and input from the risk registers and reports / relevant documentations; d. Discussion with the Executive Committee, key management personnel, heads of department and other risk owners, as applicable; e. Review the minutes of Board and Board Committees meetings, Management meetings and key working groups established in the Group; and f. Review relevant reports and materials highlighted and deliberated in Management meetings held throughout the year. AUDIT COMMITTEE REPORT