IN TOUCH progress through sharing · ISSUE 02/2017 APR – JUL 2017 KDN PP 7705/04/2015(032230) An exclusive publication for Members of The Institute of Internal Auditors Malaysia

ISSUE 02/2017APR – JUL 2017

KDN PP 7705/04/2015(032230)

An exclusive publication for Members of The Institute of Internal Auditors Malaysiawww.iiam.com.my

2017 progress through sharing

At a

IN TOUCH

GlanceCIA Review Seminar 2

Membership Drive Campaign’s Result 5

Audit Committee Conference 2017 7

Document Review & Data Analytics for Audit and Investigation 9

A Profile Of Audit Committees In Public-listed Companies 1 3

President Lucy Wong Kam YangCMIIA, CIA, CRMA, FCMA, CGMA, CA(M), MBA(Aust.)

Vice President Alan Chang Kong ChongCMIIA, CIA, CFSA, CPA (Aust.), Chartered Banker (Asian Institute of Chartered Bankers, AICB), Certified Credit Professional (AICB), B.Econ (Sydney Uni., Aust.)

Hon. Secretary Suhailah Mohamed AbdullaCMIIA, CIA, CCSA, CPA(M), CA(M)

Hon. Treasurer Hazimi KassimCMIIA , BA in Accounting (Aust.), FCPA, CA(M)

Immediate Past President Dato’ Shabaruddin IbrahimCFIIA(M), FCA(ANZ), CPA(M), CA(M), BCom (Tasmania), DSPJ(Perlis), AMN(M)

Governors Christine Ong May EeCFIIA, CIA, CRMA, CA(M), FCA(ANZ), B. Acc (Hons) (S’pore)

Devanesan Evanson CFIIA, FCCA, CA(M), LLB (Hons)

Renganathan Narasingham CMIIA

Leong David @ Leong Sze KhiongCMIIA, CIA, AICB, BCA(NZ), CA(ANZ), CA(M), MBA (Henley, UK)

Mazliana MohamadCMIIA,CRMA, CIA, ACMA, CGMA, CA(M)

Philip Satish RaoCMIIA, CA(M), CPA(M), CPA(Aust.)

Ranjit Singh, CFIIA, CIA, CRMA, MBA(UK), CA(M), CPA(M)

Vijayam Nadarajah, CFIIA, FCPA, CA(M)

Zainal Akbar Abdul KaderCMIIA, B.Com (Aust.), CRMA, ASA (Aust.)

CHAIRMAN

Sarawak District Society Francis Lou Chee Ngee AIIA

Auditor Baker Tilly Monteiro Heng

Solicitor KC Lim & Co

STAFF

Executive Director Muhammed Noh Kaderan B.Acct (Hons), CA(M), CMIIA

Head of Commercial Geetha Kanny MBA

Manager Irwan Noor Hadi Dahili B.Comm(Hons)

– Professional Development

Manager Aananthi Kanan Vede ACCA

– Finance & Corporate Services

Assistant Manager Siti Arafah Abdul Aziz BSc(Hons)

– Certification

Senior Technical Executive Noor Adiha Abu Bakar BBA(Hons)

Senior Technical Executive Muhammad Nazim Ab. Rahim BAcc (Hons)

Senior Accounts Executive Azrul Mansor BFin (Hons)

Senior Executive Jwalita Ramachandra

– Professional Development

Training Executive Josie R. Omilda

Training Executive Haslizan Mohd Zainal BMgt(Hons)

Training Executive Amy Zuhaira Mohd Ali B.Econ (Hons)

Administrative Executive Raja Nur Aina Raja Mohammad Noordin B.Econ (Hons)

Accounts Executive Syafiqah Mohd Johar BAcc (Hons)

Membership Executive Azmira Hajar Azmir B.Event Mgt (Hons)

Membership Executive Hairulanuar Kamaruddin BSc. QS (Hons)

Certification Officer Nur Atikah Abdul Aziz BBM (Hons)

Despatch Cum Office Assistant Hamdani Mohd Sahit Mashud

EDITORIAL BOARD

Chief Editor Dr Suresh Kannan PHD, MBA, BA (Hons) Acc, CMIIA

Production & Circulation Geetha Kanny MBAAzmira Hajar Azmir B.Event Mgt (Hons)Hairulanuar Kamaruddin BSc. QS (Hons)

THE INSTITUTE OF INTERNAL AUDITORS MALAYSIA1-17-7, Menara Bangkok Bank, Berjaya Central Park105, Jalan Ampang, 50450 KUALA LUMPUREmail: [email protected] website: www.iiam.com.my

Printed by: PENCETAK WENG FATT SDN BHD (19847-W)

Lot 6, Lorong Kilang A, Off Jalan Kilang, 46050 Petaling Jaya, Selangor Darul Ehsan.

BOARD OF GOVERNORS AND STAFF2016/2017

editorsays

contents

1 I Keeping In Touch

Sitting on the audit committee of a company’s board can be a challenging task. To

provide guidance to audit committee directors, the Institute in April, 2017 hosted the

Audit Committee Conference which was attended by approximately one hundred

participants. This year’s theme was “Making an impact”.

In the technical column of this magazine, Dr. Grace has provided valuable insights on

the profile of audit committee of companies listed on Bursa Malaysia. Her article

features the outcome of a study of the size and composition of audit committees, the

profile of audit committee directors and the dual role of audit committee chairman

and board chairman.

In the light of a fast changing world, there are plenty of opportunities to build a career

in internal auditing. The articles and announcements on CIA certification programme

would be a sound grounding for a budding internal auditor.

Enjoy reading this issue.

Dr Suresh Kannan

Chief Editor

VISIONInternal Audit professionals will be recognised as indispensable to effective governance, risk management and control.

MISSIONTo provide dynamic leadership for the profession of internal auditing. Activities in support of this mission will include, but will not be limited to:• Advocating and promoting the value internal audit professionals add to their

organisations.• Providing comprehensive professional educational and development opportunities,

standards and other professional practice guidance, and certification programmes.• Researching, disseminating, and promoting knowledge concerning internal auditing

and its appropriate role in control, risk management, and governance to practitioners and stakeholders.

• Educating practitioners and other relevant audiences on best practices in internal auditing.• Bringing together internal auditors from Malaysia and Asia to share information and

experiences.

OBJECTIVES1. To be the recognised voice for the internal audit profession;2. To develop and sustain the internal audit profession in Malaysia through appropriate

infrastructure, coordination, support and communication; and3. To provide exceptional service to IIA Malaysia’s members.

MOTTO : “PROGRESS THROUGH SHARING”The Institute maintains its motto “Progress Through Sharing” and share with our members information on new trends, latest internal audit techniques, regulatory and statutory requirements and the emerging issues affecting the profession.

Certification and Academic Relations 2Membership 4Professional Development 7Coming Soon 11Technical 13

editor says

Keeping In Touch I 2

academic relationscertification and

CIA Review SeminarPart 1 CIA Review Seminar was held on 3rd & 4th April 2017 at

IIA Malaysia. The course was conducted by:

• The late Dr Zakiah Muhammaddun Mohamed, Lecturer,

Universiti Kebangsaan Malaysia

• Amos Law. Director, Risk Advisory, Crowe Horwath

Governance Sdn Bhd

The seminar focused on helping candidates to further

enhance their understanding on challenging topics. The area

of focus was on exam techniques as well as in-depth focus on

topics that are deemed challenging. Hence, the participants

benefited from the session.

CIA Brie�ng SessionOn 25th April 2017, IIA Malaysia organised the 2nd session of CIA

Briefing for potential/existing CIA candidates. The session was

attended by participants from various organisations such as Ernst &

Young, Securities Commission, Kumpulan Wang Persaraan and

Tenaga Nasional Berhad. The speakers for the session were:

• Lim Hooi Hoon, Lecturer, TAR UC

• Noramalina Baharuddin, Manager, Group Internal Department,

Boustead Holdings Berhad

During the session, candidates were briefed on the CIA registration

and scheduling process, followed by sessions on ‘How to Prepare

for CIA Exam’ and ‘How to Handle CIA Questions’ where candidates

were guided and given useful tips for their preparation to sit for

the CIA exams.

Expiration Of Programme Eligibility Period

REMINDER

We wish to remind candidates who have yet to complete the

CIA/CRMA/CFSA/CCSA/CGAP Programme to do so, before their

programme eligibility expires. In the event, the eligibility expires, all

fees paid and exam parts taken and have passed will be forfeited.

To re-enrol in the certification programme, candidate must submit a

new application form and pay the appropriate fees.

CIA Review Seminar IIA Malaysia will be conducting the 2nd CIA REVIEW SEMINAR, on the following dates:

• Part 1 10 - 11 July 2017 (2 days)

• Part 2 14 & 17 July 2017 (2 days)

• Part 3 9 -11 August 2017 (3 days)

Programme Eligibility ExtensionsPlease be informed that IIA Global allows ONE year

programme extension for candidates who are currently in

an active certification programme and have not expired.

The application must be submitted via IIA Global

Certification Candidate Management System (CCMS) at

least 5 days before the expiry date. This application can be

applied only ONCE with an extension fee of US $275.

CIA Refresher CourseIIA Malaysia conducted a new session called CIA

Refresher Course on 19th May 2017. This was one of the

initiatives by IIA Malaysia to help increase the

candidates‘ passing rate in Malaysia.

The session was designed to assist candidates who

have failed the CIA exams. During the session,

candidates shared issues faced by them that

contributed to their failure and discussed their

concerns in answering the CIA questions.

This course was conducted by Monnie Goh, a CIA

trainer.

UPCOMING EVENT

academic relationscertification and


For registrations or any further enquiries please contact Atikah/Arafah at 03 2181 8008 ext.: 218/221 or email [email protected]

Employment advertisement space is available in our website for members who are interested in advertising internal audit job

opportunities with a minimal cost. You will be able to reach out to target audience from a wide range of sectors including banking,

insurance, manufacturing, services, educational, constructions and many more.

Please contact the Membership department at 03-2181 8008 Ext 215/216 or email to [email protected] /

[email protected] if you are interested in advertising in the website.

Advertise With Us

WELCOMENew Members from Mar - May 2017Professional Members

Soon Ming Ning 211060

Chua Jong Onn 211087

Rohini A/P Maniam S 211100

Charmei Tan Soo Mei 211117

Associate Members

Nicole Lee Suresh 211043

Deva Preshand A/L Chelva Kumar 211047

Izyan Hasnan 211051

Manvinder Kaur A/P Jasmindar Singh 211052

Tem Kok Leong 211053

Yap Choong Ming 211056

Wong Yat Weng 211059

Siti Fatimah Othman 211063

Krisnakumari A/P Krishnan 211064

Muhammad Danish Abdullah 211065

Timothy Henry Lansing 211066

Lee Ying Huan 211068

Tan Joo Lian 211069

Poon Kar Mun 211070

Chong Wen Xin 211071

Chang Poay Ming 211075

Suzianna Aimee Mohd Rais 211076

Sarah Danielle Dickman 211077

Sukeri Othman 211078

Farhana Zaheera Sheikh Aksar 211079

Syalmee Mahadi 211080

Christina Yan Anak Jumbot 211081

Khairul Azizie Ahmad 211082

Chong Chiew Hsia 211083

Kumari Meera A/P Surin Derpall 211084

Nur Ain Abdul Rahman 211085

Andi Lukman Hakim 211088

Khoo Lee Hui 211089

Mohamad Zuhairi Mat Zani 211074

Muhammad Shahrizwan Zainal Abu Bakar 211057

Hazwani Hazemi 211058

Akmalun-Nisa’ Yunus 211061

Nusaibah Hamizan 211062

Muhammad Arziff Fardlullah 211067

Mohd Sohaimi

Wang Sin Chi 211072

Sivaprakash A/L Kumanan 211073

Kelly Heng 211086

Lee Siao Voon 211090

Hjh Bibi Samah Hj Bujang 211091

Anis Adilla Mohd Arif 211054

Wong Vi Vian 211055

Sumit Dudeja 211092

Khaled Ahmed Eissa Garwash 211093

Sahril Mohamed Azmi 211096

Patricia Stella Anak John Dosim 211097

Muhammad Haniff Zakaria 211098

Hamidah Md Zen 211099

Hazman Mohamed 211101

Siti Rosnida Dahalan 211102

Zuraida Ahmad Tejuddin 211103

Foo Jong Han 211104

Pow Shyue Chian 211105

Tan Lian Wah 211106

Chan Ho Tack 211107

Yik Wai Leng 211108

Darshini A/P Parameswaran 211109

Shabinye A/P Kunju 211110

Suren A/L Rajaraman 211111

Tiew Suat Hiong 211112

Raja Azuan Shah Raja Zaini 211113

Norazian Mat Yusup 211114

Lee Jian Xun 211115

Kok Siew Chin 211118

Shahrul Hairi Mohamed Ali 211119

Mok Yuan Jing 211120

Neoh Zhen Huan 211121

Norazlin Robuna 211122

Hazel Halim 211123

Ho Kah Haw 211124

Ili Nabilah Zulkafli 211125

Low Jia Leng 211126

Hibatul Hakimi Zainul Abidin 211127

Chow Kim Wai 211128

Mohd Azlan Abu Talib 211129

Kuhan A/L Devadoss 211130

Joshua David Analee Chai Soong Wai 211131

Izzuddin Fakhri Norhatta 211132

Junainah Repin 211133

Upgraded Members

Siaw Yen Jak 209865

Yap Cheoi Mee 209981

Teoh Tsu Tsam 210545

Normazilawati Madzlan 209307

Lim Kok Weng 210538

Samuel Ooi Sin Yee 210941

Ewe Yee Phing 209858

Arivintha Raj A/L Anparessu 209085

Corporate Members

Tabung Amanah Pekerja C0447

Akademi Sains Malaysia C0448

membership



membership

2017 Membership Drive Campaign’s Result

Congratulations

Let’s contribute and grab the opportunity to share your thoughts

with your friends in the internal audit fraternity. The Editorial Board

welcomes contributions from members. We accept articles, short

stories, jokes, tips, etc.

We encourage submission of fraud findings and audit stories that

reflect the new age of internal auditing – those that emphasise best

practices, use of technology and value-added results. If your article is

published, you will be awarded a token from IIA Malaysia.

Love to write?Membership update form is available at www.iiam.com.my.

To update your information, please fill in the membership

update form and email to [email protected]

Please contact the Membership department at

03-2181 8008 Ext 215/216/217 for further assistance.

Membership Update Form

No Name Membership No No of Members Referred

1 Lee Kin Yin 206773 2

2 Rosman Hadi Mohamad Sayoti 207408 1

3 Devinderjit Singh 209082 1

4 Zunaina Zaini 208928 1

5 Benedict Lee Yee Kuan 209608 1

6 Siaw Yen Jak 209865 1

7 Zinnirah Abbas 207558 1

8 Nurul Azreen Yunos 210874 1

9 Ong Kean Siang 208941 1

10 Yap Sei Chuan 207999 1

11 Tan Kian Meng 206851 1

12 Yong Mei-Lin 208256 1

13 Kubu Anak Jenggi 208708 1

No Name Membership No No of Members Referred

14 Mohd Khairel Nizam Alias 207000 1

15 Guru Prakash Prasanna 210613 2

16 Nashroolfizan Nasir 209424 1

17 Leong Zhi Qi 210446 1

18 Zulkifflee Mohamed 207689 1

19 Lim Poh Leng 208569 1

20 Jeniffer Mok Kha Wai 206802 2

21 Sim Yaw Hong 210927 1

22 Norashikin Mastor 208342 1

23 Rosmaliza Mohammed Jaffar 210189 1

24 Voon Woan Jiun 210929 1

25 Syafiq Ahamad Zufami 211017 1

The Membership Drive Campaign ended on 31 May 2017

and IIA Malaysia would like to thank the following members

for participating in the Campaign:

For enquiry, please contact membership department at 03-2181 8008 Ext 215/216/217 or e-mail [email protected]

Note: All fees are subjected to 6% GST

Rejoining fee of RM100 will be charged to members who fail to renew their membership in 2017

Have you renewed your membership for 2017?To ensure uninterrupted services and benefits from IIA Malaysia, do not forget to renew your membership with the Institute.

4 easy ways to renew your membership:

• Cheque or bank draft made payable to: THE INSTITUTE OF INTERNAL AUDITORS MALAYSIA

• Direct bank-in / Online transfer to the Malayan Banking account no: 5144 0450 1825 (please email the bank-in slip to [email protected])

• Credit Card (please obtain the authorisation form from the website)

• Online Banking www.maybank2u.com.my (please email a copy of your online transaction to [email protected])

Don’t Delay, Renew Today!

Members’ Networking Session in Kuala Lumpur

IIA Malaysia has once again conducted a sharing session

titled ‘7 Sins in Internal Audit’ which was held on 13th April

2017 in IIA Malaysia Training Hall. The 2 hour session was

delivered by En Khaidzir Shaari, the Vice President of IIA

Malaysia.

The session was attended by participants from various

organisation and levels ranging from directors, managers,

internal auditors and management team forming a good crowd

of mixed background. The speaker presented the session based

on an article written by Richard Chambers, President and CEO

of The IIA. Some of the topics discussed were:

• The actions or mistakes that can prevent or derail

success

• The core principles for the professional practice of

internal auditing

The participants enjoyed the session and the topic. The

evening ended with light refreshments, giving the participants

an opportunity to network amongst fellow attendees.

membership


Keeping In Touch I 87 I Keeping In Touch

professionaldevelopment


KUALA LUMPUR, 5 April 2017 – The Institute

of Internal Auditors Malaysia (IIA Malaysia)

and Malaysian Institute of Accountants (MIA)

successfully organised the Audit Committee

Conference on 5 April 2017 at Connexion

Conference & Event Centre @ Nexus, Bangsar

South, Kuala Lumpur. The conference was

attended by 104 participants comprising of

Chairman of the Board, Directors, Audit

Committee Members, Risk Managers and

Internal Auditors.

This conference aims to help audit committee members achieve these

goals enroute to cultivating good corporate governance, with the

end-game of building and sustaining responsible business. Drawing

on the knowledge and experiences of distinguished speakers at the

top of their game, this conference covered a broad spectrum of issues

and provided practical guidance on dealing with the significant

challenges facing audit committee members today.

Audit Committee Conference 2017



KUALA LUMPUR, 15 & 16 May 2017 – IIA

Malaysia organised 2-day workshop on

“Document Review & Data Analytics for Audit

and Investigation” on 15 - 16 May 2017 for 28

participants at Concorde Hotel, Kuala Lumpur and

was conducted by Mr Kent Hoh. He is is a

proficient trainer in internal auditing, fraud

investigation and corporate governance. He

started his career in public accounting practices

before progressing to leading audit and forensic

teams in Fortune 500 corporations. Mr. Hoh has

extensive experience in conducting audit and

investigation projects in the region. He conducted

various successful projects in Singapore,

Indonesia, Malaysia, India, China, Japan, Australia,

New Zealand, Brazil, Hungary, Poland, etc.

The speaker had covered several areas such as

Importance of document review and data

analysis, Surefire 3 steps approach in Document

Review, Data Analysis – Overview, 4 Steps

Systematic Approach in Data Analysis, Common

Quantitative Data Analysis Procedure and etc.

On completion of this program participants will

be able to acquire the overall concept of

document review in auditing and investigation, be

able to perform detailed and effective document

review, gain knowledge on common techniques of

documentation fraud/wrongdoing, and acquire

the overall concept of data analysis and basic

digital forensic.

Document Review & Data Analytics For Audit And Investigation

Disclaimer

Opinions expressed herein do not necessary represent those of IIA Malaysia. Neither IIA Malaysia or the Editorial Board is responsible for the

accuracy of any statement, opinion or advice contained herein. Readers should rely on their own due diligence in making decisions concerning

any matter herein. All materials in any form contained herein are copyrighted by IIA Malaysia. Reproduction and/or storage and/or retrieval in

whole or part in whatsoever manner is not permitted without the written consent from IIA Malaysia.

Publisher : The Institute of Internal Auditors Malaysia

Typesetting : Bluefish Design

Risk Based Audit (RBA) Methodology Application : Embedding Coso For Greater WinsKUALA LUMPUR, 12 & 13 February 2017 – The Institute of

Internal Auditors Malaysia (IIA Malaysia) successfully organised

2-day workshop titled “Risk Based Audit (RBA) Methodology

Application: Embedding COSO for Greater Wins” on 12 & 13

February 2017 at Concorde Hotel Kuala Lumpur. The workshop was

conducted by Mr Steven Yee for 18 participants. Steven Yee is an

active member of the IIA Malaysia. This workshop aims to sharpen

the skills and increase focus of the participants on critical aspects

of controls which we sometimes tend to overlook or dare not

venture into. Technique to embed COSO elements throughout the

assurance review process (i.e. planning, execution and reporting)

was also be shared with the participants using the facilitator’s

widely accepted one-stop RBA template.

Internal Audit Report Writing: Improving Mindset, Clarity And FocusKUALA LUMPUR, 3 & 4 May 2017 - The Institute of Internal Auditors

Malaysia (IIA Malaysia) successfully organised a two-day workshop titled

‘Internal Audit Report Writing : Improving Mindset, Clarity and Focus’

at Renaissance Hotel, Kuala Lumpur. The course was successfully

conducted by Mr Steven Yee was attended by 19 participants.

Throughout the training, audit professionals learned that it is vital to

appreciate the larger picture of the audit findings in relation to the

business risk and governance practises before putting their thoughts in

systematic writings in order to convince their client to adopt changes to

improve the business processes and risk management countermeasures.

Plus, the ability to correctly identify the root cause for each finding is a

crucial skill so that proper remedy can be prescribed to strengthen the

internal control system.

Auditor- in-charge Tools And TechniquesKUALA LUMPUR, 15 - 18 MAY 2017 - A four-day

training which aims to instil the skills needed by

auditor-in-charge to lead with confidence was been

organised by IIA Malaysia. The training, called

‘Auditor-In-Charge Tools and Techniques’ was held at

Concorde Hotel, Kuala Lumpur. Lim Hooi Hoon was the

trainer appointed and the session was attended by 17

audit processionals. The participants learned the need

of having organisational, time management and

problem solving skills to manage a successful team.

During the training, several topics and areas including

IPPF and role for the auditor-in-charge, techniques of

planning audit, audit programs and staffing, audit

supervision, and other relevant topics were covered.




comingsoon

Internal Auditing: Assurance & Advisory Services, Fourth Edition

Internal Auditing: Assurance & Advisory

Services, Fourth Edition, is a comprehensive

textbook designed to teach students the

fast-growing global profession of internal

auditing. Written through the collaboration of

educators and practitioners, this textbook

serves as a cornerstone for internal audit

education. It covers key fundamentals of

internal auditing that can be applied in an

ever-changing business world, serving as a

reference and training tool for internal audit

practitioners.

The textbook is completely aligned to The IIA’s

Code of Ethics and International Standards for

the Professional Practice of Internal Auditing. The

fourth edition includes online student and

instructor tools that include case studies and

leading generalised audit software packages

and knowledge content from ACL, CaseWare

IDEA, Wolters Kluwer’s TeamMate, and

Protiviti’s KnowledgeLeader®. Supplemental

teaching materials are available for instructors

upon request.

THE FOURTH EDITION HAS BEEN UPDATED

TO REFLECT:

• The latest release of The IIA’s International

Professional Practices Framework (IPPF)

and the Committee of Sponsoring

Organisations of the Treadway

Commission’s (COSO’s) exposure draft of

the Enterprise Risk Management – Aligning

Risk with Strategy and Performance

Framework.

• Emerging developments in technology,

including a heightened focus on

cybersecurity and the impact of associated

risks to organisations.

• The latest information and data from the

new COSO Fraud Risk Management Guide

and data from the Association of Certified

Fraud Examiners (ACFE).

• A robust discussion of the benefits of using

data analytics to provide assurance as part

of internal audit activities.

• Wolters Kluwer’s latest version of

TeamMate audit management software

enhancements with improved case studies

in end-of-chapter material as applicable.

• Protiviti’s resource, KnowledgeLeader®,

which has been integrated throughout the

content in the form of relevant case study

material at the end of each chapter,

encouraging students to conduct further

research and apply critical-thinking skills.

The International Professional Practices

Framework (IPPF) ® is the conceptual

framework that organises authoritative

guidance promulgated by The Institute of

Internal Auditors. A trustworthy, global,

guidance-setting body, The IIA provides internal

audit professionals worldwide with authoritative

guidance.The IPPF includes Mandatory

Guidance and Recommended Guidance.

Mandatory Guidance:

• Core Principles for the Professional Practice

of Internal Auditing.

• Definition of Internal Auditing.

• Code of Ethics.

• International Standards for the Professional

Practice of Internal Auditing (Standards).

Recommended Guidance:

• Implementation Guidance.

• Supplemental Guidance.

The IPPF 2017 edition features the Mission of

Internal Audit, Core Principles for the

Professional Practice of Internal Auditing, the

Definition of Internal Auditing, Code of Ethics,

the Standards, and Implementation Guidance in

hard copy. All Supplemental Guidance

documents are on USB.

(IPPF)® International Professional Practices Framework (IPPF) ® - 2017 Edition

By : Urton L. Anderson, PhD, CIA, CFSA, CCEP; Michael J. Head, CIA, CPA, CISA, CMA; Sridhar Ramamoorti, PhD, CIA , CFSA, CGAP, CRMA; Cris Riddle, MA, CIA, CRMA; Mark Salamasick, CIA, CISA, CRMA, CSP; Paul J. Sobel, CIA, CRMA

Publication Date : May 2017

Publish By : Internal Audit Foundation

Publication Date : April 2017

Publish By : The Institute of Internal Auditors

Quality Assessment Manual for the Internal Audit Activity (QA Manual)

The IIA’s International Professional Practices

Framework (IPPF), The Standards, requires all

Internal Audit activities regardless of industry,

sector, or size of staff, to develop and maintain a

Quality Assurance and Improvement Program

(QAIP). The essential elements of a QAIP include

internal and external assessments.

Revised by leading quality assessment

methodology experts, along with an

international team of reviewers, this updated

Quality Assessment Manual broadens the focus

to include all components of a QAIP: internal

assessments (ongoing and periodic), metrics,

continuous improvement and reporting, as well

as external assessments. Aligned with the

Standards, the Manual:

• Outlines a quality assessment process flow

that streamlines gathering of evidence and

eliminates duplication of work

• Contains standardised guides that promote

ease of use while achieving consistency in

assessment techniques and documentation

of results

• Provides a Road Map that highlights the

alignment of the specific assessment

activities with the mandatory guidance of

the IPPF.

The Quality Assessment Manual is a must-have

reference for every Internal Audit activity and

Chief Audit Executive’s resource library.

Publication Date : July 2017

Publish By : The Institute of Internal Auditors


comingsoon

memberssection

Building Awareness of Internal Audit in MCIS InsuranceIn conjunction with the International Internal Audit Awareness month, MCIS Insurance Berhad's Chief Internal Auditor Ms. Chitra Sridharan who took office shortly after mid 2016; embarked on an awareness campaign company wide in the month of May 2017. In a small scale, among the activities undertaken include e-mail blasts sent to all staff to provide an overview of Internal Audit in MCIS, customized list of Frequently Asked Questions (FAQ) in regards to the Internal Audit Department as well as sharing on the role of internal audit in the context of Corporate Governance. The purpose of this exercise was to re-introduce the Internal Audit function within MCIS and provide high level understanding of Internal Audit’s core activities. Broadly, the weekly communication themes were delivered in four segments:Week 1 : Introduction to Internal Audit In MCISWeek 2 : Frequently Asked QuestionsWeek 3 : Corporate Governance & Internal AuditWeek 4 : Aspects of Effective Communication This initiave received encouraging feedbacks from employees within the organistaion. The initiaive was concluded with the reiteration of the commitment by Internal Audit to continue to assist in ensuring the adequacy and effectiveness of internal controls to support MCIS Insurance in the achievement of it's business strategy.

This section is open to all Corporate Members of IIA Malaysia to submit any write up, update information or activities in Internal Audit within their respective organization.

Kindly contact Membership Department at [email protected] or 03-2181 8200 ext 215/216 for more information.

Internal Audit Team of MCIS Insurance Berhad

technical


A PROFILE OF AUDIT COMMITTEES IN PUBLIC-LISTED COMPANIES By Dr Grace Mui Yanchi, CIA, CPA (Aust), CA(M)

and Thye Huat Lai, CA(M)

In 2016, IIA Malaysia commissioned a study to profile audit

committees in Malaysian public-listed companies. Data was collected

from 785 annual reports of public-listed companies with a 2015

financial year end. Audit committee disclosures were made

predominantly in the directors’ profile section of annual reports. The

key findings are discussed below.

1) Audit committee size and composition

The size of audit committees ranged from two to six directors. The

average number of audit committee members was three (see

Figure 1). Most audit committees comprised a Chair and a

minimum of two members.

Bursa Malaysia Listing Requirements Paragraph 15.09(1)(a) and (b)

require an audit committee of a public-listed company to have at

least three members who are non-executive directors, with a

majority of them being independent directors. Audit committee

members were predominantly (i.e. 96%) Malaysian and

predominantly (i.e. 92%) male.

Most (i.e. 89%) audit committee members were independent

directors and 68% of companies had audit committees that

comprised only of independent directors, which is reflective of

2017 Malaysian Code on Corporate Governance paragraph 8.4,

which states that ‘the Audit Committee should comprise solely of

Independent Directors’.

2) Qualification

2015 annual reports disclosure revealed that most companies

complied with Bursa Malaysia Listing Requirement 15.09 (1) (c)(i),

which requires that ‘at least one member of the audit committee

must be a member of the Malaysian Institute of Accountants’.

Where the audit committee member is not a member of the

Malaysian Institute of Accountants, Bursa Malaysia Listing

Requirement 15.09 (1) (c) requires that the member must have:

(ii) at least three years’ working experience and

(aa) passed the examinations specified in Part I of the First

Schedule of the Accountants Act 1967; or

(bb) he must be a member of one of the associations of

accountants specified in Part II of the First Schedule of the

Accountants Act 1967; or

(iii) fulfils such other requirements as prescribed or approved by

the Exchange

Listing Requirement 15.09 (c)(i) and (ii)(aa) and (bb) relates to the

professional accounting qualification of individual audit

committee members. Based on the 2015 annual report disclosure,

37% of audit committee members possessed at least one

professional accounting qualification.

The 2017 Malaysian Code on Corporate Governance Practice 8.5

states that ‘Collectively, the Audit Committee should possess a

wide range of necessary skills to discharge its duties. All members

should be financially literate and are able to understand matters

under the purview of the Audit Committee including the financial

reporting process’.

3) The Audit Committee Chair

23% of audit committees had the Board Chair on the audit

committee (see Figure 2). 7% of audit committees had an Audit

Committee Chair who was also the Board Chair, i.e. a dual role. All

Board Chairs on audit committees were independent

non-executive directors.


states that ‘The Chairman of the Audit Committee is not the

Chairman of the board’. Guidance 8.1 explains that ‘The Chairman

of the Audit Committee is responsible for ensuring the overall

effectiveness and independence of the Committee. Having the

positions of Chairman of the board and Chairman of the Audit

Committee assumed by the same person may impair objectivity of

the board’s review of the Audit Committee’s findings and

recommendations’.

Figure 1 : Audit committee size

2 members1%

3 members78%

5 & 6 members3%

4 members18%

Profile of AC members

• Malaysian

• Male

• Independent director

• Belongs to an AC of three members

• 96% of AC members were Malaysian.

• 92% of AC members were male.

• 89% of AC members were independent directors.

• 68% of ACs comprised only of independent directors.

technical


technical


(ii) at least three years’ working experience and

(aa) passed the examinations specified in Part I of the First

Schedule of the Accountants Act 1967; or

(bb) he must be a member of one of the associations of

accountants specified in Part II of the First Schedule of the

Accountants Act 1967; or

(iii) fulfils such other requirements as prescribed or approved by

the Exchange

Listing Requirement 15.09 (c)(i) and (ii)(aa) and (bb) relates to the

professional accounting qualification of individual audit

committee members. Based on the 2015 annual report disclosure,

37% of audit committee members possessed at least one

professional accounting qualification.


states that ‘Collectively, the Audit Committee should possess a

wide range of necessary skills to discharge its duties. All members

should be financially literate and are able to understand matters

under the purview of the Audit Committee including the financial

reporting process’.

3) The Audit Committee Chair

23% of audit committees had the Board Chair on the audit

committee (see Figure 2). 7% of audit committees had an Audit

Committee Chair who was also the Board Chair, i.e. a dual role. All

Board Chairs on audit committees were independent

non-executive directors.


states that ‘The Chairman of the Audit Committee is not the

Chairman of the board’. Guidance 8.1 explains that ‘The Chairman

of the Audit Committee is responsible for ensuring the overall

effectiveness and independence of the Committee. Having the

positions of Chairman of the board and Chairman of the Audit

Committee assumed by the same person may impair objectivity of

the board’s review of the Audit Committee’s findings and

recommendations’.

Figure 2 : Board Chairs on the Audit Committee

785 Audit Committees

23% of Audit Committees included the Board Chair

7% of Audit Committees had an Audit Committees Chair who was also the Board Chair

2017TR AININGEVENTS FOR THE THIRD QUARTERCALENDAR

Note: All fees are inclusive of 6% GST * This seminar/workshop is in collaboration with ISACA

Legend:a) Level I - Auditor with less than one year’s audit experience, responsible for gaining auditing knowledge, perspective and job performance skills.b) Level II - Auditors with more than one year’s experience. Responsible include staff auditor training, planning, execution and completion of

audits; and project leader duties.c) Level III - Supervisory and management personnel responsible for multi-audit duties and participating in budgeting, planning, scheduling and

monitoring activities or special projects. Persons responsible for managing the auditing department. Key responsibilities include auditing, planning, scheduling, budgeting, reporting and evaluating performance.

d) Level IV - Boards of Directors, Audit Committee Members, Chief Audit Executives, and Senior Management Personnel.

July

August

Sept

October

Date (s) Code Title Location Member Fees (RM)10 - 13 KL28 Beginning Auditor Tools and Techniques Kuala Lumpur 2,597.0010 - 11 KL29 Sampling Technique for Internal Auditing and Compliance Review Kuala Lumpur 2,491.00 “How many sample is enough?” 10 - 11 KL63 Internal Controls and Risk Management for Accountants and Auditors Kuala Lumpur 2,597.0017 KL55 Hands On GRC Kuala Lumpur 2,650.0018 KL04 The New Malaysian Code on Corporate Governance – Kuala Lumpur 954.00 “Implications to listed issuers and their Boards and Management” 24 - 25 KL30 Corporate Internal Investigation Kuala Lumpur 1,325.00

1 KL31 The New Malaysian Code on Corporate Governance – Kuala Lumpur 954.00 “Implications to listed issuers and their Boards and Management” 7 - 8 KL32 Value for Money Auditing Kuala Lumpur 2,438.007 - 9 KL33 High Impact Operational Auditing in a Manufacturing and Kuala Lumpur 2,438.00 Trading Environment 21 - 24 KL34 Auditor-in-Charge Tools and Techniques Kuala Lumpur 2,703.0021 - 24 KL35 Beginning Auditor Tools and Techniques Kuala Lumpur 2,597.0024 KL58 Using Data Analytics to Detect Fraud Kuala Lumpur 954.00

11 - 12 KL36 Changing Needs for Compliance Auditing: Improving Technique, Skills and Reporting Style for Better Results and Assurance Kuala Lumpur 2,173.0011 - 12 KL61 Basic IT Audit Techniques for Non-IT Auditors Kuala Lumpur 2,597.0011 - 14 KL37 Beginning Auditor Tools and Techniques Kuala Lumpur 2,597.0013 - 14 KL65 Emerging Technologies and Innovative Fraud Management Kuala Lumpur 2,597.00

2 - 3 KL38 Internal Audit Report Writing: Improving Mindset, Clarity, Focus, and Brevity for Greater Impact to Clients Kuala Lumpur 2,544.009 - 10 CF02 2017 National Conference KL Convex 2,067.0016 - 17 KL40 Risk Based Audit (RBA) Methodology Application : Embedding COSO for Greater Wins. Kuala Lumpur 2,438.0023 KL41 Financial Statement Fraud Kuala Lumpur 1,325.0024 - 25 KL42 Audit-Monitoring-Management Of Construction 'Projects' Kuala Lumpur 2,385.0030 - 31 KL43 Risk Management Assurance Kuala Lumpur 1,961.00

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For further information call us today at Tel : 03-2181 8008 ext 214/213/212/211/210 or email us at [email protected]. The training calendar is also available at www.iiam.com.my

Documents

IN TOUCH progress through sharing · ISSUE 02/2017 APR – JUL 2017 KDN PP 7705/04/2015(032230) An exclusive publication for Members of The Institute of Internal Auditors Malaysia