AUDIT COMMITTEE REPORT (vi) Other matters (a) Reviewed the terms of reference for the AC to support the Board in fulfilling its oversight responsibilities and fiduciary duties in formulating and maintaining a robust enterprise risk management framework and systems, and ensuring compliance with applicable laws, regulations, rules, directives, and guidelines to manage the overall risk exposure of DNeX Group effectively. (b) Assessed the Company’s compliance with the MMLR, approved accounting standards, and other relevant legal and regulatory requirements. (c) Reviewed and assessed the legal proceedings involving DNeX and its group of companies. INTERNAL AUDIT FUNCTION DNeX Group has maintained an in-house Internal Audit department since November 2020 to enhance the effectiveness of its control and governance processes. The department is led by Encik Yushri bin Zainudin, a Fellow of the Association of Chartered Certified Accountants (ACCA). As of 31 December 2025, the department is managed by a Head of Internal Audit and supported by a team consisting of three (3) audit personnel. All personnel within the Internal Audit department are free from any relationships or conflicts of interest with DNeX Group that could compromise their objectivity and independence in their work. The internal auditors report directly to the AC and support the AC in discharging its duties and responsibilities. The Internal Audit department conducts its functions in accordance with an annual audit plan, which is reviewed and approved by the AC. The audit plan includes an assessment of the adequacy of operational controls, risk management, compliance with established policies and procedures, applicable laws and regulations, and management efficiency. Additionally, the AC evaluates whether the internal audit function is adequately staffed with skilled, proficient internal auditors. The internal auditors perform their duties in accordance with the Audit Charter framework and adhere to a methodology aligned with the International Standards for the Professional Practice of Internal Auditing, as set forth by the Institute of Internal Auditors. The total cost associated with the internal audit function for the FYE 31 December 2025 was RM837,000. For more information on risk management, internal controls, and internal audit functions, please refer to the Statement on Risk Management and Internal Control in this report. DNeX INTEGRATED REPORT 2025 122 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
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