Dagang NeXchange Berhad Annual Report 2019

annual report 2019 75 3. SUMMARY OF THE WORK OF THE AUDIT COMMITTEE A summary of the work of the Audit Committee in the discharge of its duties and responsibilities for the financial year ended 31 December 2019 is as follows:- (i) Financial Reporting (a) Reviewed the DNeX Group’s quarterly unaudited financial results and the related announcements before recommendation to the Board of Directors (the “Board”) for consideration and approval for release to Bursa Securities. When reviewing the report, the Audit Committee 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 Audit Committee had also reviewed the audited financial statements of the Company and DNeX Group for the financial year ended 31 December 2019 which covers the financial position and performance for the year 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 Audit Committee for inclusion in the Company’s Annual Report. (d) Reviewed the statement about the state of risk management and internal control of DNeX Group pursuant to paragraph 15.26(b) of the MMLR of Bursa Securities. (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’ Audit Planning Memorandum, audit approach and scope of audit work for the year. (c) Met with the external auditors without the presence of executive Board members and Management to discuss DNeX Group’s practices to enhance compliance in all law and regulations imposed by relevant regulatory bodies. (d) The declaration of independence of the external auditors was noted. (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 on auditable entities with significant high risks. (b) Reviewed the progress of audit assignments carried out in accordance with the Internal Audit Plan for the year 2019. (c) Reviewed the Internal Audit Reports issued during the year 2019 as follows:- 1. Revenue, purchasing and inventory management cycle and system of Global Market eCommerce Sdn. Bhd. (“GMEC”), a wholly owned subsidiary of Dagang Net Technologies Sdn. Bhd., and Imizu Sdn. Bhd. (formerly known as DNeX IMIZU Sdn. Bhd.) (“Imizu”), a 55% owned subsidiary of GMEC. 2. Business development and project management, and billing and collection of DNeX Telco Services Sdn. Bhd. (“DNeX Telco”). 3. Effectiveness of controls for Genaxis Group Sdn. Bhd. (“Genaxis”) and Innovation Associates Consulting Sdn. Bhd. in respect to the following business processes:- (i) Tendering and contract management; and (ii) Billing and collection. CORPORATE ACCOUNTABILITY