In presenting the annual audited financial statements and interim financial statements on a quarterly basis to the shareholders, the Board is responsible for presenting a clear, balanced, and understandable assessment of DNeX Group’s performance and position. The AC is entrusted to assist the Board in reviewing DNeX Group’s financial reporting process and the accuracy of its financial results, and scrutinising information for disclosure to ensure accuracy, adequacy, completeness, and compliance with the accounting standards. The Board places great emphasis on the objectivity and independence of the external auditors. Through the AC, the Board maintains a transparent relationship with the external auditors in seeking professional advice on internal control and ensuring compliance with appropriate accounting standards. The AC is empowered to communicate directly with the external auditors to highlight any issues of concern at any point in time. The AC ensures the external audit function is independent of the activities it audits and reviews the contracts for the provision of non-audit services by the external auditors to ensure that it does not give rise to a conflict of interests. Excluded contracts will include management consulting, internal audit and standard operating policies and procedures documents. For the financial period ended 31 December 2023, fees paid to the external auditors, Messrs Crowe Malaysia PLT (“Crowe”) and its affiliated firms by DNeX Group are stated in the table below: Nature of Services 31 Dec 23 Group RM’000 31 Dec 23 Company (RM’000) Audit fees: – Crowe 741 330 – Crowe affiliate 823 – 1,564 330 Non-Audit fees: – Crowe 116 51 – Crowe affiliate 173 289 51 Non-audit fees included: (i) Review of Integrated Report, Statement of Risk Management and Internal Control. (ii) Upon agreed procedures of Energy Profit Levy and provision decommissioning. The external auditors have confirmed to the AC that they are, and have been, independent throughout the conduct of the audit engagement in accordance with the independence criteria set out by the Malaysian Institute of Accountants. Further information on the roles and responsibilities of the AC may be found in the AC Report of this Integrated Report. 2. Risk Management and Internal Control Framework The Board assumes ultimate responsibility for the effective management of risk across DNeX Group, determining its risk appetite as well as ensuring that each business area implements appropriate internal controls. In order to achieve such objective, a risk management policy has been adopted by DNeX Group. DNeX Group’s risk management systems are designed to manage, mitigate, and eliminate risks (where possible) to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board, with the assistance of the AC and the RGSC, reviews the adequacy of DNeX Group’s risk management and internal control systems. The reviews cover all material controls, including financial, operational, compliance and risk management systems. The AC and RGSC are further supported by a number of sources of internal assurance within the DNeX Group to determine the adequacy and effectiveness of existing risk controls. Integrated Report 2023 161
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