92 Governance DAGANG NeXCHANGE BERHAD Integrated Report 2024 CORPORATE GOVERNANCE OVERVIEW STATEMENT The AC ensures that the external audit function remains independent from the activities it audits. It reviews the contracts for the non-audit services provided by the external auditors to prevent any conflict of interest. Contracts excluded from this review include those related to management consulting, internal auditing, and the creation of standard operating policies and procedures. For the FYE 31 December 2024, fees paid to the external auditors, Messrs Crowe Malaysia PLT (“Crowe”), foreign affiliates of Crowe and other auditors by DNeX Group are stated in the table below: Company Group Nature of Services (RM’000) (RM’000) Audit: - Crowe 450 852 - Foreign affiliates of Crowe - 858 - Other auditors - 568 Non-Audit: - Crowe 21 21 - Foreign affiliates of Crowe - - Non-audit fees included: (i) Review of Integrated Report, Statement of Risk Management and Internal Control. 21 21 The external auditors have assured the AC that they have maintained their independence throughout the audit process in accordance with the independence criteria set out by the Malaysian Institute of Accountants. For more details on the roles and responsibilities of the AC, please refer to the AC Report included in this Integrated Report. 2. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK The Board is ultimately responsible for effectively managing risk across DNeX Group, determining its risk appetite and ensuring that each business area implements appropriate internal controls. DNeX Group has adopted a risk management policy to achieve such objectives. DNeX Group designs its risk management systems to identify, manage, mitigate, and, where possible, eliminate risks to achieve business objectives. However, it is essential to note that these systems can provide only reasonable assurance, not absolute assurance, against material misstatement or losses. The Board, with assistance from the AC and the RGSC, evaluates the adequacy of DNeX Group’s risk management and internal control systems. These evaluations encompass all material controls, including financial, operational, compliance and risk management systems. Additionally, several internal assurance sources within DNeX Group support the AC and RGSC in assessing the adequacy and effectiveness of current risk controls. The Board acknowledges its responsibility for maintaining a robust system of internal controls that ensures the effectiveness and efficiency of DNeX Group’s operations and safeguards shareholders’ investments, as well as the Company assets and interests, while ensuring compliance with relevant laws, regulations, and DNeX Group’s internal financial administration procedures and guidelines. DNeX Group has established an Internal Audit department that reports directly to the AC as specified in the AC’s Terms of Reference. Internal auditors perform their function according to an annual internal audit plan approved by the AC. The Internal Audit department has three (3) audit personnel assisting the person responsible for the internal audit. Details on the person responsible for the internal audit are as set out below: Name Izham Syah bin Mahrome Qualification Fellow Member of the Association of Chartered Certified Accountants Malaysia and the Malaysian Institute of Accountants. Independence Does not have any family relationship with any director and/or major shareholder of the Company Public Sanction or penalty Has no convictions for any offences within the past 5 years, other than traffic offences, if any and has not been imposed any public sanction or penalty by the relevant regulatory bodies during the financial year. Additional information is available in this Integrated Report’s Statement on Risk Management and Internal Control.
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