PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT 1. AC The current AC consists of two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-Executive Director, and all of them are financially literate and have sufficient understanding of the Group’s business. All the members of the AC undertook continuous professional development to keep abreast of relevant developments in accounting and auditing standards, practices and rules. The composition of the AC is presented in the AC Report of this Integrated Report. The Chairman of the AC is not the Chairman of the Board, thus ensuring that the objectivity of the Board’s review of the AC’s findings and recommendations remains intact. The AC has adopted a Terms of Reference which sets out its goals, objectives, duties, responsibilities and criteria on the composition of the AC which includes a former key audit partner of the Group to observe a cooling-off period of at least three (3) years before being able to be appointed as a member of the AC. In presenting the annual audited financial statements and interim financial statements on a quarterly basis to the shareholders, the Board is responsible to present a clear, balanced and understandable assessment of the Group’s performance and position. The AC is entrusted to provide assistance to the Board in reviewing the Group’s financial reporting process and 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 the internal control and ensuring compliance with the 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 in order to make sure that it does not give rise to conflict of interests. The excluded contracts would include management consulting, internal audit and standard operating policies and procedures documentation. 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. 133 DNeX INTEGRATED REPORT 2022
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