05 CORPORATE GOVERNANCE DATASONIC GROUP BERHAD 94 COMMITTEE REPORT AUDIT A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024 (CONT'D) 2. External Auditors (Cont'd) d. In accordance with the External Auditors Assessment Policy and paragraph 15.21 of MMLR, the Audit Committee had in May 2024 undertook an annual assessment on the performance of the External Auditors focusing on issues of their suitability, objectivity and professional independence together with the Chief Financial Officer and the Management. The External Auditors’ Assessment Policy is available for reference on the Company’s website at www.datasonic.com.my. A questionnaires checklist was used to determine the minimum performance 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. The assessment procedures also considered the information disclosed by the external auditors in their Annual Transparency Reporting particularly in areas related to their legal and governance structure, measures to uphold audit quality and manage risks, and measurement of audit quality indicators as emphasized in the announcement issued by the Securities Commission’s Audit Oversight Board (“AOB”) in April 2022. 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 and as shown by the External Auditors in the undertaking of the annual audit. 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 2024 which amongst others include assessment on the:- • External auditors firm with emphasis on key professional staffs assigned to the external audit team to ensure their independence, competencies and objectivity in fact and appearance; • The terms of the audit engagement partner and quality control partner 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; • 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 on the professional independence aspect. (b) The External Auditors 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 Company and of the Group in accordance with their firm’s requirements and the provisions of the By-Laws on Professional Independence of the Malaysian Institute of Accountants. The External Auditors also confirmed that the non-audit services provided to the Group during the year were in accordance with the independence requirements and had not compromise their independence as external auditors of the Company. (c) The Audit Committee reviewed the summary of non-audit services rendered to the Group which comprised mainly of recurring assignments of non-audit services in respect of tax compliance, tax advisory, review of transfer pricing documentations, agreed upon procedures and the annual review of the Statement on Risk Management and Internal Control. The Group has incurred a total of RM164,930 for non-audit services representing around 35% of total fees.
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