91 Governance DAGANG NeXCHANGE BERHAD Integrated Report 2024 CORPORATE GOVERNANCE OVERVIEW STATEMENT 5. UPHOLD INTEGRITY IN FINANCIAL REPORTING 5.1 Compliance with Applicable Financial Reporting Standards The financial statements of DNeX Group have been prepared using the historical cost convention and modified to include other valuation methods as disclosed therein under significant accounting policies and in compliance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards, and the requirements of the Companies Act 2016. The Board is responsible for ensuring the quality and completeness of publicly disclosed financial reports. This responsibility ensures shareholders receive a balanced and meaningful evaluation of the Company’s financial performance, position and prospects by issuing annual audited financial statements, quarterly financial reports and corporate announcements of significant developments affecting the Company in accordance with the MMLR of Bursa Securities. The Board is committed to continuously delivering a clear, balanced, and comprehensive evaluation of DNeX Group’s financial performance and prospects. To uphold its commitments to stakeholders, the Company ensures that the recording and reporting of financial and business information is fair and accurate. 5.2Relationship with Auditors and Independence of External Auditors The Board, through the AC, upholds a transparent and professional relationship with the Company’s external and internal auditors. During the year under review, the AC met the external auditors twice, without the presence of the Executive Directors and management, to allow the AC and the external auditors to exchange independent views on matters that require the AC’s attention. The external auditors, Messrs Crowe Malaysia PLT, provide an independent opinion based on their audit of the financial statements of DNeX Group and report their findings to the Company’s shareholders, as required by Section 266 of the Companies Act 2016. The external auditors also attend each AGM to assist in giving clarifications to shareholders on the audited financial statements. The AC conducts an annual review to assess the suitability and independence of the external auditors. To accomplish this, the AC has established specific criteria. Additionally, the committee seeks written and/or verbal assurance from the external auditors confirming their independence throughout the audit engagement in accordance with all relevant professional and regulatory standards. 1. AC The current AC consists of three (3) Independent NonExecutive Directors, two (2) of whom are financially literate. All members possess a strong understanding of DNeX Group’s business. The members of the AC participate in continuous professional development to stay updated on relevant developments in accounting and auditing standards, practices, and regulations. The AC Report within this Integrated Report details the composition of the AC. Furthermore, the Chairman of the AC is not the Chairman of the Board, which maintains the objectivity of the Board’s review of the AC’s findings and recommendations remains intact. The AC has adopted a Terms of Reference that outlines its goals, objectives, duties, responsibilities, and criteria for the composition of the AC, which includes a former key audit partner of DNeX Group to observe a cooling-off period of at least three (3) years before being eligible for appointment as a member of the AC. In presenting the annual audited and interim financial statements quarterly to the shareholders, the Board is responsible for delivering a clear, balanced, and understandable assessment of DNeX Group’s performance and financial position. The Board entrusts the AC with the task of reviewing DNeX Group’s financial reporting process and ensuring the accuracy of its financial results, which involves scrutinising information intended for disclosure to verify its accuracy, adequacy, completeness, and compliance with the accounting standards. The Board emphasises the importance of objectivity and independence of the external auditors. Through the AC, the Board fosters a transparent relationship with the external auditors to seek professional advice on internal control and ensure compliance with relevant accounting standards. The AC is empowered to communicate directly with the external auditors to highlight any concerns at any point in time. PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT
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