Datasonic Group Berhad Annual Report 2021

DATASONIC GROUP BERHAD 86 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL 1. Reviews by the Audit Committee and Risk Management Committee Reviews carried out by the AC on the adequacy and effectiveness of the internal control systems concerning operational issues reported by the internal and external auditors and attributable actions taken by Management in respect of the findings to provide assurance that control procedures are in place and are being followed as intended. Reviews carried out by the RMC on the adequacy and effectiveness of the risk management system and the mitigation controls to manage the key risk areas reported by the risk management function to provide assurance that the system is operating as intended in order to manage the overall risk exposure of the Group. Internal control and key risks related matters which warranted the attention of the Board were conveyed by the AC and RMC to the Board. 2. Independent Reviews by Internal Audit Department (“IAD”) IAD performs regular reviews of the Group’s operations and system of internal controls and evaluates the adequacy and effectiveness of the controls processes implemented by the process owners and Management. During the financial year ended 31 March 2021, the adequacy and effectiveness of internal controls were reviewed by the AC based on reports from audits conducted by IAD according to the approved audit plan. Audit issues and actions taken by the Management to address the shortcomings raised by the IAD were deliberated and accepted at the AC meetings. There were 13 Internal Audit Reports issued and reviewed by the AC throughout the financial year in which the IAD has provided its recommendations to the Management to improve on the design and / or effectiveness of controls where applicable. Additionally, the AC also reviewed the implementation progress of the corrective action plans committed by the Management for all key findings and recommendations highlighted in previous Internal Audit Reports to ensure that all the corrective actions were implemented appropriately. From the Internal Audit Reports issued, there were weaknesses and gaps in internal controls identified which subsequently the remedial actions and corrective measures including monitoring have been and are being taken to address such weaknesses. 3. Continuous Compliance Review The Management team 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. MONITORING