subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group and of the Company, the accounting processes and controls, and the industry in which the Group and the Company operate. INDEPENDENT AUDITORS’ REPORT To The Members of Tenaga Nasional Berhad (Incorporated In Malaysia)(Registration No. 199001009294 (200866-W)) FINANCIAL STATEMENTS Sec 5 365 REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current financial year. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters How our audit addressed the key audit matters Revenue recognition for sales of electricity Refer to Note 31 - Revenue Sales of electricity of RM51,713.2 million and RM48,223.3 million is the most significant component of the Group’s and the Company’s revenue, respectively, for the financial year ended 31 December 2023. Revenue from sales of electricity is based on the end customers’ consumption and the related tariff rates, which are governed by the Incentive Based Regulations imposed by the Energy Commission. We focused on the revenue recognition for sales of electricity as it involves the use of complex billing