AUTHORITY In carrying out its duties and responsibilities, the AC is vested with the following authority: (a) Explicit authority to investigate any matter within its terms of reference. (b) Equipped with resources required to perform its duties. (c) Have full, free, and unrestricted access to any information, records, personnel and properties of the Company and any other companies in DNeX Group. (d) Have direct communication channels with the External Auditors and persons carrying out the internal audit function or activity. The Head of Internal Audit should report directly to the AC. (e) Obtain external professional advice and secure the attendance of outside parties with relevant experience and expertise, if deemed necessary. (f) Convene meetings with External Auditors, Internal Auditors, or both without the presence of the Management, whenever deemed necessary. SUMMARY OF ACTIVITIES OF THE AC A summary and an overview of the activities of the AC in discharging their duties and responsibilities during the financial period ended 31 December 2023 are as follows: (i) Financial Reporting (a) Reviewed the DNeX Group’s quarterly unaudited financial results and the related announcements before recommendation to the Board for consideration and approval for release to Bursa Securities. When reviewing the report, the AC received assurance from the Management that the condensed consolidated interim financial statements were prepared in accordance with Malaysian Financial Reporting Standards 134: Interim Financial Reporting, paragraph 9.22 of the MMLR of Bursa Securities and International Accounting Standards 34: Interim Financial Reporting issued by the International Accounting Standards Board. (b) The AC also reviewed the Audited Financial Statements of the Company and DNeX Group for the financial period ended 31 December 2023, which cover the financial position and performance for the financial period and ensure that it complied with all disclosures and regulatory requirements and recommended the audited financial statements to the Board for approval. (c) Reviewed and approved the Report of the AC for inclusion in the Company’s Integrated Report. (ii) External Audit (a) Considered the audit fees and re-appointment of Crowe Malaysia PLT as External Auditors of the Company and DNeX Group. (b) Reviewed and approved the External Auditors’ Policy, External Auditors’ Audit Planning Memorandum, audit findings, audit approach and scope of audit work for the financial period. (c) Met with the External Auditors without the presence of Executive Board members and Management to discuss DNeX Group’s practices to enhance compliance with all laws and regulations imposed by relevant regulatory bodies. (d) Reviewed and approved the non-audit services provided/to be provided by the External Auditors and its affiliates to ensure the provision of the nonaudit services does not impair their independence or objectivity as External Auditors of the Company and DNeX Group. (e) Evaluated the performance of the External Auditors for the financial period ended 31 December 2023, covering areas such as calibre, quality processes, audit team, audit scope, audit communication, audit governance and independence and considered and recommended the re-appointment of the External Auditors. (iii) Internal Audit (a) Reviewed and approved the Internal Audit Plan for DNeX Group to ensure adequate scope and comprehensiveness of the activities and coverage of auditable entities with significant high risks. (b) Reviewed the progress of audit assignments carried out in accordance with the Internal Audit Plan for the financial period ended 31 December 2023. (c) Reviewed the Reports issued by the internal audit functions that were tabled at the AC meetings in which management was present at such meetings to provide pertinent clarification or additional information to address questions raised by AC members pertaining to matters raised. (d) Performed follow-up on the status of management’s agreed action plans on recommendations raised in previous internal audit cycles, including specific timelines for resolving those outstanding matters. Integrated Report 2023 177
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