Dagang NeXchange Berhad Annual Report 2018

73 Annual Report 2018 Audit Committee Report CORPORATE ACCOUNTABILITY 4. 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 2018 is as follows:- (i) Financial Reporting (a) Reviewed the 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 the Group for the financial year ended 31 December 2018 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 on Risk Management and Internal Control pursuant to Paragraph 15.26(b) of the MMLR of Bursa Securities for Board’s approval. (ii) External Audit (a) Considered the audit fees and re-appointment of Crowe Malaysia PLT as external auditors of the 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 the 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 2018. (c) Reviewed the Internal Audit Reports issued during the year 2018 as follows:- 1. Fixed Asset Management 2. Sales Processes for OGPC Sdn. Bhd. 3. Corporate Governance Compliance 4. Customer Service Management and Service Level Agreement for Dagang Net Technologies Sdn. Bhd. 5. Billing and Collection and Implementation of New Billing System for Dagang Net Technologies Sdn. Bhd. (d) Reviewed the Follow-up Internal Audit Reports issued during the year 2018 as follows:- 1. Centralised Procurement and Vendor Management 2. Project Management for DNeX Oilfield Services Sdn. Bhd. 3. Fixed Assets Management 4. Sales Processes for OGPC Sdn. Bhd. 5. Compliance with Malaysian Code on Corporate Governance for DNeX (e) Assess the effectiveness of the internal audit functions. (iv) Risk Management Reviewed the consolidated risk management report and mitigation action plans for identified risks on a quarterly basis. (v) Related Party Transactions Reviewed the related party transactions and recurrent related party transactions entered into by the Company and its subsidiaries on a quarterly basis.