ISSUE 02/2012APR – JUN 2012

KDN PP 7705/04/2013(032230)

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

2012 progress through sharing

Internal Auditing Workshop in University Malaya (UM) 2

Members’ Networking Session in Johor Bahru and Kuching 6

2012 East Malaysia Conference on Internal Auditing 7

17th Annual General Meeting 9

Bursa Malaysia’s Half Day Governance Programme 1 2

How Green is Your Internal Audit ‘Tick’ 1 3

At a

IN TOUCH

Glance

2012 East Malaysia Conference on

Internal Auditing

2012 East Malaysia Conference on

Internal Auditing

NewsletterNewsletter

President Datin Josephine Low Suet MoiBCM, MBA(UK), CIA, CMIIA, CFE, CISA

Vice Presidents Christine Ong May EeB.ACC(HONS)(SG),CMIIA,F CA(AUST), CA(M)

Nickson Choo Wei Sin B.ACC(HONS), CMIIA, CISA, CFE, CA(M)

Hon. Secretary Lucy Wong Kam YangMBA (AUST),CIA, CMIIA, FCMA, RA

Hon. Treasurer Mohamed Farook NasarMBA(USM),CIA, CMIIA, ICSA (UK)

Governors Devanesan EvansonLLB(HONS)(UK), CFIIA, CA(M), FCCA(UK)

Walter SandosamMMGT, B.SC(HONS)(UK), CIA,CFSA, CRMA,CFIIA,CFE

Mohd Khaidzir Bin ShahariBACC(HONS),CIA, CMIIA, CA(M)

Affeiz Abdul RazakBBA(HONS)FINANCE, CFSA(US), CMIIA

Philip Satish Rao CMIIA, CPA(AUST), CPA(M), CA(M)

Dr Nurmazilah Dato’ MahzanPHD(UK), CIA, CMIIA, CA (M), CPA(M)

Zahran Bin Tasliman B.ACC(HONS), CIA,CCSA, CMIIA

Nik Shahrizal Sulaiman BA (HONS) ACCOUNTING & FINANCE, CMIIA, ACA (ICAEW), FRM (GARP),

Alan Chang Kong Chong B.ECONOMICS (AUST), CIA,CFSA,CPA(AUST), CCP (IBBM)

Audit Committee Members Wong Yew Sen B.ECON (HONS), CFIIA Abdul Razak Haron CIA, CFIIA Lee Min On CMIIA, CA(M), CPA(M) CHAIRMAN Sabah District Society Sarawak District Society Woo Yoke Meng, CMIIA Auditor Baker Tilly Monteiro HengSolicitor KC Lim & Co STAFF Executive Director Yong Ngeak Choo MBA(UK), CIA, CMIIATechnical Director Nur Hayati Baharuddin

MBA(USA), CIA,CCSA,CFSA, CGAP,CRMA,CMIIA, FCPA, CA(M)

Operations Director Hoh Kim Hyan, B.COM(AUST), FCA (UK)Senior Training Manager See Wai Yoong B.COM(AUST), CMIIA, CA(M),

FCPA(AUST)Senior Membership Manager Tey Tai Sin BA (HONS)Senior Certification Manager Zaimah Ismail BBA(HONS)Technical Manager Tengku Idreena Tuan Ismail BA (HONS)Technical Manager Sivamalar Thuraisingam BA(HONS)(UK)

ACCOUNTING & FINANCE, CIA, CCSA, CMIIAAssistant Manager Corporate Services Jess Liu Shiak Peng B.COM(AUST)Assistant Manager Membership Siti Rohani Umar BA (HONS) Accounts Executive Sally, Goh Syed LeeAccounts Executive Jessie Liew Siau Yan BA (HONS) ACCOUNTINGCertification Executive Siti Arafah Abdul Aziz BSC(HONS)Training Executive Umi Hazemah Hairizain BSC(HONS)Training Executive Veronica Justin B.COMP.SCTraining Executive Josie R. Omilda Membership Executive Nor Shazwani Mohamad Shafiee BMGT(HONS)Membership Executive Noor Adiha Binti Abu Bakar BBA(HONS)Admin Officer Nur Zuhairah Zamberi BSC (HONS)Admin Officer Raja Nur Aina Raja Mohammad Noordin

B.ECON (HONS)Admin Officer Yusliza Binti Md YusofAdmin Officer Norhidayah Binti Abdul Kadir BIAM(HONS)Despatch Cum Office Assistant Hamdani Mohd Sahit Mashudd

EDITORIAL BOARDPSC Chairman Christine Ong May Ee

B.Acc(Hons)(SG),CMIIA,FCA(AUST), CA(M)Deputy Chairman Affeiz Abdul Razak BBA (Hons) Finance, CFSA(US), CMIIA Zahran Bin Tasliman B.Acc(Hons), CIA,CCSA, CMIIA

Assistant Chief Editor Dr Suresh Kannan PHD, MBA, BA (Hons) Acc, CMIIACommittee Members P. Shanthi Palaniappan CIA, CMIIA Wendy Low B.ACC (RMIT, AUST), CMIIA Sky Chan Kin Kwan B.ACC (Hons), AIIA

Production & Circulation Tey Tai Sin BA (Hons) Siti Rohani Umar BA (Hons) Nor Shazwani Mohamad Shafiee BMGT (Hons) Noor Adiha Binti Abu Bakar BBA (Hons)

BOARD OF GOVERNORSAND STAFF2012/13

THE INSTITUTE OF INTERNAL AUDITORS MALAYSIA160-3-3 Kompleks Maluri, Jalan Jejaka,Taman Maluri, 55100 Kuala Lumpur, Malaysia.Tel: (603) 9282 1148 Fax: (603) 9282 1241E-mail: ijdm@po.jaring.my Website: www.iiam.com.my

1 KEEPING IN TOUCH • Issue 2 Apr – Jun 2012

VISIONTo be the national voice of the internal audit profession: Advocating its value, promoting best practices, and providing exceptional service to its members.

MISSIONTo provide dynamic leadership for the global profession of internal auditing. Activities in support of this mission will include: • Advocating and promoting the value that 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 to practitioners and stakeholders knowledge concerning

internal auditing and its appropriate role in control, risk management, and governance; • Educating practitioners and other relevant audiences on best practices in internal auditing; and • Bringing together internal auditors 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.

contentsAcademic Relations 2New Release 4Membership 5Events 7Technical 13

editor says

Editor saysAt the recent East Malaysia Conference of the Institute, the Minister of Finance (II) and Minister of Local Government and Community Development Sarawak, YB Dato Sri Wong Soon Koh expressed the need for good governance, irrespective whether it is the private or public sector. The Honourable Minister also highlighted that good business is not about achieving the desired financial bottom line by being competitive but also by being ethical and sustainable.

Sustainability is the buzzword today. Internal auditors are called upon to review the sustainability framework of an organisation. To improve their competency in auditing this area, internal auditors may take the traditional training routine or could form networking groups and share ideas in their quest to elevate their competency in new areas that need to be audited. In this respect, the Institute does promote the formation of networking groups and interested internal auditors can contact the Institute for advice on setting up a particular networking group.

In this newsletter, the 17th AGM of the Institute is featured and there is also an update on the CIA examination syllabus change. The current 4 parts examination format will be changed to 3 parts.

Some or many of you may be saying to yourselves “finally!”- yes, this issue is our inaugural e-newsletter. Moving on the next issue will be printed with the last issue in e-format again .We trust you embrace ‘green’ practices as well.

Blissful reading.

Dr Suresh KannanChief Editor

Issue 2 Apr – June 2012 • KEEPING IN TOUCH 2

academic relations

IIA Malaysia organised a one-day Internal Auditing Workshop in University Malaya on 11 May 2012. The inaugural

Internal Auditing Workshop for university students was conducted in collaboration with the Faculty of Business

and Accounting, UM.

More than 160 students who are undergoing the Bachelor in Accounting programme attended the workshop.

Most of these students have already attended the Internal Auditing course which is offered as an elective course.

The workshop provided the students with greater insight into the roles of internal auditors in the areas of control,

risk and governance. The workshop was officially opened by the President of IIA Malaysia, Datin Josephine Low. In

her speech, Datin Josephine encouraged the students to pursue a career in internal audit as it is an exciting and

fast-growing profession, and one that offers new graduates a remarkably varied career.

During the workshop, Narayanan, an Audit Specialist with the United Nation Development Programme (UNDP)

shared his experience as an internal auditor while the Technical Director of IIA Malaysia, Nur Hayati, shared the

latest development in the internal audit

profession. In the afternoon the students were

divided into three workshops on Fraud

Auditing, IT Auditing and Enterprise Risk

Management presented by Suresh D, Aizuddin

Mohd Ghazali and Lee Fook Sun respectively.

Lastly, Walter Sandosam, the then Chairman of

the Academic Relations Committee of IIA

Malaysia presented a preview on the CIA

certification to the students.

The workshop was officially closed by Dr

Nurmazilah Mahzan, Deputy Dean of the

Faculty who is also a member of the Board of

Governors, IIA Malaysia.

Internal Auditing Workshop In University Malaya (UM)

University students of the Faculty of Business and Accounting, UM

President of IIA Malaysia, Datin Josephine Low at the official opening of the Workshop

Narayanan sharing with the students his career as an internal auditor

3 KEEPING IN TOUCH • Issue 2 Apr – June 2012

academic relations

Changes to CIA Syllabus in 2013

Closing Date For Professional Experience Recognition (PER) For CRMA

The CIA syllabus will be changed from four to three exam parts. With the reduction in parts, The IIA will be eliminating the recognition credit provision (exemption) previously applicable to Part 4. The final change consists of a realignment of the exam content outline and question count for each part. Below is a brief overview of the new outline:

The new content and three-part exam will be offered in July 2013.

In recognition of the varying lengths of time spent by candidates earning their CIAs and the level of exam rigor, The IIA has developed the transition plan below to assist candidates who are in the process of earning their CIA at the time of the new exam structure’s implementation. The table communicates the equivalency of items completed in the previous four-part structure and their relation to the new three-part exam.

The new exam content and format will be as rigorous and complex as the current exam. Candidates currently in the process of earning their CIAs are encouraged to continue their path towards certification in the current exam format. Doing so will ensure that any adjustments to the implementation schedule will not affect their ability to earn the only globally recognised internal auditing credential in a reasonable time frame.

The closing date for IIA Malaysia’s members to submit application for CRMA via PER is 30 November 2012. Members who are interested to apply must complete your form and submit to IIA Malaysia before the deadline to ensure your applications are reviewed in time for final submission to The IIA.

For more details on the CRMA, please contact Zaimah at zaimah@iiam.com.my or call 03 9282 1148, extension: 122.

IIA Malaysia is pleased to CONGRATULATE the following members who have successfully obtained the CRMA designation:• Walter Sandosam, Senior Research Fellow, HELP University• Lee Siew Weng, Executive Director, Columbus Advisory Sdn Bhd• Sivamalar Thuraisingam, Technical Manager, IIA Malaysia• Wee Hock Kee, Managing Director, CG Board Asia Pacific Sdn Bhd• Yeo Hock Kim, Senior Manager, Audit & Business Advisory, Malaysia Airlines System Bhd• Chong Vai Ming, Internal Auditor, Yee Lee Edible Oils Sdn Bhd• Chin Ka Fai, Senior Investment Manager, Great Eastern Life Assurance (M) Berhad• Lee Fook Sun, Freelance Business Consultant/Workshop Facilitator• Dennis Mah Siew Hoong, Director, Audex Governance Sdn Bhd• Ho Kong Chang, Group Chief Internal Auditor, EON Bank Bhd

Part 1 Exam: Internal Auditing Basics

Duration: 2.5 hours

No of questions: 125

Topical focus areas:• IIA Mandatory Guidance• Internal Control and Risk• Tools & Techniques for Conducting

the Audit Engagement

Part 2 Exam: Internal Audit Practice

Duration: 2 hours

No of questions: 100

Topical focus areas:• Managing the Internal Audit

Function• Managing Individual Engagements• Fraud Risks and Controls

Part 3 Exam: Internal Audit Knowledge Elements

Duration: 2 hours

No of questions: 100

Topical focus areas:• Governance• Risk Management• Organisational Structure and

Business Processes• Communication• Leadership• IT/Business Continuity• Financial Management• Global Business Environment

Candidates Who Have Completed

Part 1Part 2Part 3, but has yet to complete Part 4

Part 4, but has yet to complete Part 3

Will Receive Credit Under The New Structure ForPart 1Part 2Part 3

No credit given

Additional Requirements For Receiving Identified Credit

NoneNoneWithin six months of the new structure implementation, you must complete one of the following items:• Pass part 4 of the previous exam• Apply and receive exemption of Part 4 through the previous

exam process• Apply for and receive Professional Experience Recognition (PER)Candidates who do not complete one of the above three options within the six-month transition window will be required to take the new Part 3 exam.Must complete the new Part 3

Issue 2 Apr – Jun 2012 • KEEPING IN TOUCH 4

new releases

IFRS Implementation : Best Practices for Assurance of Organisational ValueInternational Financial Reporting Standards (IFRS) promulgated by the International Accounting Standards Board (IASB) have been adopted by more than 120 countries, including the European Union, Canada, and other major U.S. trading partners — and all signs suggest that the U.S. will adopt IFRS in the near future. Internal auditors’ holistic organisational view places them in a unique position to positively influence the conversion process.

A successful IFRS deployment will require rigorous attention and effective change management processes. The IFRS conversion process, however, provides an opportunity to not only enhance the efficiency and effectiveness of financial accounting, but also of risk management and operational, IT system, and internal control policies and procedures. The internal auditors’ holistic organisational view places them in a unique position to positively influence the conversion process.

IFRS Implementation: Best Practices for Assurance of Organisational Value provides: • An overview of IFRS and offers best practices for a successful transition. • Survey results and six in-depth case studies of Canadian and U.S. corporations at various stages of

conversion. • A basic strategy for IFRS implementation from Canada and Europe. • Detailed recommendations for how internal audit may provide strategic and cost advantages in any

future implementation projects in the U.S.

The guidance in this book is invaluable for internal auditors who seek to advocate for their role in IFRS implementation and are looking for guidance in developing a successful strategy. It will also be of value to managers who recognise the benefit of including internal audit in the IFRS process.

Sawyer’s Internal Auditing, 6th editionFirst published in 1973, Larry Sawyer’s work has helped guide many internal auditors and shaped the profession. While the foundation principles of internal auditing remain core, the ever-changing global business environment requires that internal auditors continue to adapt their position as value-adding partners in their organisations or risk becoming obsolete.

Sawyer’s philosophy was that internal auditors should watch for emerging trends while keeping pace with changes in The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), IT, legislation, and regulations — and to respond effectively to international events and evolving governance and risk management mandates. This 6th edition is a 3-volume set, making the content more navigable for the reader, and each volume includes an index and glossary for easy reference.

Volume 1: Internal Audit Essentials This volume provides the basic background information that informs the practice of internal auditing. The history of internal auditing is explored and culminates in the profession as the risk-based endeavor it is today. Risk and control models are introduced along with IT frameworks. Finally, the differences between assurance and consulting engagements and the specific activities involved for each are enumerated, and a thought-provoking discussion of blended engagements is provided.

Volume 2: Internal Audit Processes and Methods Volume 2 is more tactical than Volume 1. Beginning with the broader view of managing client and stakeholder relationships and managing audit processes, it narrows its focus to cover specific audit processes and methods, such as: • Defining the audit/risk universe. • Planning assurance engagements. • Evaluating control design. • Testing controls. • Documenting work performed. • Communicating results. • Engaging in consulting activities.

Volume 3: Governance, Risk Management, and Compliance Essentials New to this edition, Volume 3 covers this emerging area of internal auditing by presenting a holistic view of governance, risk management, and compliance. The volume then examines each individual concept in separate chapters. This volume also discusses the specific responsibilities internal auditors have regarding fraud and ethics. The material also defines and provides a detailed discussion of corporate social responsibility and sustainability and offers suggestions on the types of contributions internal auditors can make to this growing initiative.

5 KEEPING IN TOUCH • Issue 2 Apr – Jun 2012

membership

Professional MembersWong Yong Hau 209453Sutha A/P Jayaraman 209462Sim Hui Ngo 209464Loh Jen Hou 209467Kevin Low Ee Ming 209468Lim Thiam Beng 209471Ramzee Che Omar 209474Joel Elizer A/L D.K Jeyaraj 209476Choon Siew Thong 209490Tiong Chee Siang Lisa 209491Lim Yong Joo 209492Haniza Filzah Hayani Abu Haniffa 209510Jot Jmin Jian 209521

Associate MembersLiew Le Jin 209454Tee Lean Sim 209455Shahnul Niza Mohd Yusof 209456Chan Fong Yeah 209457S. Sathiavel A/L Sinnan 209458Bukhari Abdul Rahman 209460Muhammad Farhan Md. Yazid 209463Loo Woan Yin 209465Raihan Mohd Jamil 209466Mohd Haniff Hashim 209469

Nagarajan A/L Ramasamy 209470Azlinda Alias 209472Akmal Nur Anuar 209473Maheran Mohd Talib 209475Nantha Kumar A/L Krishnan 209477Nur Fazlizah Fazil 209479Hanna Rabittah Zaharin 209480Norfaeizah Abu Bakar 209481Fahim Seman 209482Muhd Fariq Zaki Madzlan Kushairi 209483Tan Chia Yee 209484Tay Kwoil Hock 209485Sivaneswary A/P Muniyan 209486Madzafar Ahmad Mahidin @Abd Razak 209489Ng Siao Chi 209493Zhang Wen Qiang 209494Lim Kha Heng 209495Merina Abu Tahir 209496Sriram Iyer 209497Tan Pui Fong 209498Au Pooi Fong 209504Mohd Azrul Hisyam Azmi 209505Koo Ye Chin 209506Nik Fariza Nik Hamdan 209507Azlan Rabis 209508Umapathy A/L Ponnusamy 209509Nor Hafiza Haji Mat 209511Siti Alina Abd Karim 209512Nurdalili Sharifuddin 209513Nurliza Md Yusoff 209514Norfadzilah Human 209515Nazere Abd Rani 209516Teo Yin Peng 209517Lam Pick Yen 209518Rosal Aizuddin Ahmad 209519Norsyahidah Ahmad 209520Syahrul Neezam Md Dom 209522Hamdan Ahmad 209523

Hajah Jamilah Bisri 209524Lim Siew Ching 209526

Student Member Muhammad Ezran Hafiz Kamarulzaman 209452Aina Nadrah Rosli 209459Aishah Kamal 209461Nur Fasihah Mohamed Itam 209487Nurul Zawani Abdul Rahman 209488Chong Jin Hua 209499Chair (Chia) Jiann Siang 209500Teh Saw Ying 209501Loo Soo Hooi 209502Low Ren Yun 209503 Upgraded Members Asha A/P Balakrishnan 209395Siew Sook Hoon 208631Lizah Abd Wahab 207871Leo Pui Yong 208538Yeo Hock Kim 207906Kenneth Chin Wai Hoe 206725Mohd Azman Zainal Abidin 207567Chang Ming Chew 208053Rama Sockalingam A/L Nagappan 209176Nik Farhan Nik Mohd Nasir 208987Lim Wan Wei 209284Tan Kah Chuan 209014Yip Pooi Kuan 209087Ammar Farhan Zainal 209259

Audit Committee Members Chia Chu Fatt AC0052 Corporate Members Safeguards G4S Sdn Bhd C0389Amanah Ikhtiar Malaysia C0390

Welcome

Members’ Corner – CONTRIBUTIONS WELCOMED!

New Membersfrom April –May 2012

Renew your membership TODAY and enjoy uninterrupted services and bene�ts. 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 fax the bank-in slip to 603 9282 1241 with your name and telephone number written on it or scan and email to adiha@iiam.com.my / shazwani@iiam.com.my / siti@iiam.com.my )

• Credit card (please download the authorisation form from the website or request from the Secretariat)

• Online banking: http://www.maybank2u.com.my(please fax a copy of your online transaction with your name and telephone number written on it or scan and email to adiha@iiam.com.my / shazwani@iiam.com.my / siti@iiam.com.my )

Renew Your Membership!Renew Your Membership!

Here’s the opportunity for members 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, anecdotes etc.

We also 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. Topics of interest include:• Sustainability• Practical issues/aspects/challenges on implementing the

Code of Corporate Governance• Strategic Auditing• Economic Transformation Programme (ETP)• Talent management in internal audit

If your article of between 300 to 400 words is published, you will be awarded CPD points and a token from IIA Malaysia.

For enquiry, kindly contact Cik Adiha or Pn Shazwani or Pn Siti at (603) 9282 1148 Ext 110 or e-mail to adiha@iiam.com.my / shazwani@iiam.com.my / siti@iiam.com.my

Rejoining fee of RM100 will be charged to members who failed to renew their membership in 2012

Issue 2 Apr – Jun 2012 • KEEPING IN TOUCH 6

membership

Members’ Networking Session In Johor Bahru

Members’ Networking Session in Kuching

IIA Malaysia hosted a Members’ Networking Session at The Puteri

Pacific Hotel, Johor Bahru on 19 April 2012 with a turnout of 22

participants. Nickson Choo, Vice President, IIA Malaysia and

Director of Crowe Horwath Governance Sdn Bhd presented a talk

on “Reviewing IT Governance Within An Organisation”. After the talk

and a Q&A (questions and answers) session, the participants were

formed into groups for an ice-breaking game. They enjoyed

themselves and won prizes in the game which tested on general

knowledge and team work. The evening concluded with an

opportunity for the participants and speakers to network while

enjoying refreshments.

IIA Malaysia organised a members’ networking

session for members at the Grand Margherita Hotel,

Kuching on 7 June 2012 with a turnout of 18

participants. The session was held for members to

meet and share information. Nickson Choo, Vice

President, IIA Malaysia gave an informative talk on

“Reviewing IT Governance Within An Organisation”.

The Chairman of IIA Malaysia Sarawak District

Society, Woo Yoke Meng, in his welcome address

also highlighted to members of the up-coming

2012 East Malaysia Conference. An icebreaking

session and refreshment further facilitated more

networking amongst the participants.

Nickson Choo presented the prizes to winners of the icebreaking session

One of the groups working on the game during the ice-breaking session

Nickson Choo presenting his talk to

participants in Kuching

Participants listening avidly to the presentation Group discussion in progress

Participants filling up the management awareness diagnostic form

1 CCH TeamMate

2 KPMG

3 BusinessWate Solutions

4 Ernst & Young

7 KEEPING IN TOUCH • Issue 2 Apr – Jun 2012

events

Issue 2 Apr – Jun 2012 • KEEPING IN TOUCH 8

Welcome Address by IIA Malaysia President, Datin Josephine Low

INTERNAL AUDITINGEast Malaysia Conference On

2012

The Institute of Internal Auditors

Malaysia was proud to host its third

East Malaysia conference, the 2012

East Malaysia Conference on Internal

Auditing, on 25-26 June 2012 at Hilton

Kuching, Sarawak. The Conference,

themed “Navigating in the Era of

Governance”, was attended by

approximately 110 participants from

throughout the country.

OPENING CEREMONYThe conference commenced with the welcome address by Datin Josephine Low, President of IIA Malaysia, touching on the effect of the changing economic and regulatory climate in propelling greater demand for improved risk management for regulators, companies and boards of directors. She pointed out that a survey on the State of Internal Audit conducted by Thomson Reuters this year revealed that 57 per cent of respondents listed increased focus on risk and control as their top issue, posing opportunities and challenges for internal auditors. In view of this, the internal auditor of today must possess an ever expanding tool kit of technical skills, competencies and personal traits to perform a job that has been constantly changing in scope and function.

YB Dato Sri Wong Soon Koh, Minister of Finance (II) and Minister of Local Government and Community Development Sarawak, delivered the keynote address and officiated the opening of the conference. He stated that corporate stakeholders should place greater emphasis on good governance in order to position their organisations for success. Good governance, irrespective of private or public sectors, puts emphasis on oversight, transparency and accountability. As such, key stakeholders must embrace the understanding that good business is not just about achieving the desired financial bottom line by being competitive but also by being ethical and sustainable. In view of the emerging challenges in corporate governance, he urged internal auditors to be proactive by adopting a strategic mindset in order to identify emerging risks and trends and help to get their organisations ready for new threats and new opportunities.

PLENARY SESSIONS AND MASTER CLASSESThere were a total of 8 plenary and concurrent sessions featuring 11 prominent speakers, panelists and moderators from Malaysia and abroad.

The four plenary sessions held on the first day and two plenary sessions on the second day encompassed the following topics:• Internal Audit Leadership and Facilitating Strong Governance• Making Strides in Navigating Risk Management• Cloud Computing Security – Are You Forgetting Something?• Public Sector Internal Audit Challenges• Navigating in the Era of Governance• Corporate Governance Blueprint and Malaysian Code of Corporate Governance 2012

The second day of the conference featured two concurrent master classes focusing on the following topics:• Turning Risk into Opportunities• Conduct and Monitor Audit Activities on a Business Continuity Plan (BCP)

The wide array of topics led by the distinguished speakers was well received by the participants.

By: Lim Wei Hong

NAVIGATING IN THE ERA OF GOVERNANCE

Participants were seen dropping by the respective booths and getting to know the latest products and offerings from the exhibitors. Participants also visited the IIA Malaysia booth to view the latest IIA publications and enjoyed discounted prices for on-site purchases. The Institute also promoted the upcoming 2012 National Conference on Internal Auditing, themed “Rising Potential”, which will be held on 22-23 October 2012 at Kuala Lumpur Convention Centre.

2012 East Malaysia Conference - Sponsors

2012 East Malaysia Conference - Exhibitors

1 CCH TeamMate Platinum

2 KPMG Gold

3 ACCA Silver

4 Ernst & Young Silver

5 BusinessWate Solutions Siver

6 CIMB Silver

SPONSORSHIP & EXHIBITION

Registration starts early

Keynote address by YB Dato Wong Soon Koh

YB Dato Sri Wong Soon Koh visiting IIA Malaysia’s booth Plenary session in progressFrom left: Mohd Khaidzir Bin Shahari, Patricia Miller,

Tan Sri Datuk Amar (Dr) Hamid bin Bugo, Petrus GimbadDr Michael Chiam and Woo Yoke Meng

Woo Yoke Meng, YB Dato Sri Wong Soon Koh and Datin Josephine Low

Abdul Hamid bin Abdullah

Dr Stanley Chang

Patricia Miller and Lee Min On

Anthony Lim

The Institute’s 17th Annual General Meeting (AGM) was held on 12 May 2012 at the Prince Hotel & Residences, Kuala Lumpur. A total of 88 members of IIA Malaysia attended the AGM.

The meeting commenced with an opening speech by Datin Josephine Low, President of IIA Malaysia. Datin Josephine presented the major achievements of IIA Malaysia in 2011 that included membership growth, increase in training revenue certification and quality assurance. One of the main highlights for 2011 was the 2011 IIA International Conference which was the first ever international conference held in Asia and was attended by 2,200 participants from around the world. She also shared with the members the future plans for IIA Malaysia. Datin Josephine thanked the Board of Governors and Secretariat for their commitment and support, and congratulated the various committees for their efforts in achieving the Institute’s objectives. Datin Josephine expressed her appreciation to members for their support and looked forward to members’ continued participation.

The next item on the meeting’s agenda was to receive the Annual Report and Financial Statements for the financial year ended 31 December 2011. This was followed by the election of the Board of Governors. Nik Shahrizal Sulaiman, Zahran Tasliman, Lucy Wong Kam Yang and Alan Chang Kong Chong were elected to the Board.

The meeting moved to appoint Messrs Baker Tilly Monteiro Heng as the Institute’s auditors. The final item on the agenda was to transact any other business for which due notice has been given in accordance with the Companies Act 1965 and the Institute’s Articles of Association. After the final agenda the Institute presented certificates of appreciation to retiring members of the Board of Governors 2011/2012 and Working Committees 2011/2012 to recognise their invaluable contributions, support, commitment and services. The AGM concluded with a note of thanks to all members for their attendance and making the event a success.

List of Governors Who Retired and Were Eligible for Re-ElectionRaja Azura Binti Raja MahayuddinFatimah Abu BakarMohamad Azlan Bin Jaafar Datuk Theivandran A/L S. Rajadurai

List of New Elected Governors 2012/2013Nik Shahrizal Sulaiman Zahran TaslimanLucy Wong Kam YangAlan Chang Kong Chong

17th Annual General Meeting

9 KEEPING IN TOUCH • Issue 2 Apr – Jun 2012

events

Past and present Board of Governors

Presentation of the certificates of appreciation

Counting ballots

Professional members casting their votes

Members at the AGM

No. Name Working Committee Position

1 Raja Azura Binti Raja Mahayuddin Board of Governor / Governor / Professional Development Committee Committee Member

2 Fatimah Binti Abu Bakar Board of Governor Governor

3 Mohamad Azlan Bin Jaafar Board of Governor / Governor / Research and Technical Advisory Committee Deputy Chairman

4 Datuk Theivandran A/L S.Rajadurai Board of Governor Governor

5 Nickson Choo Wei Sin Professional Development Committee Chairman

6 Eddie Leng Siew Kheen Professional Development Committee Deputy Chairman

7 Ryan Chong Chee Seng Professional Development Committee Committee Member

8 Zahran Tasliman Professional Development Committee Committee Member

9 Dennis Mah Siew Hoong Professional Development Committee Committee Member

10 Christine Ong May Ee Professional Services Committee Chairman

11 Affiez Abdul Razak Professional Services Committee Deputy Chairman

12 Dr. Suresh Kannan Professional Services Committee Committee Member

13 P. Shanti Palaniappan Professional Services Committee Committee Member

14 Wendy Low Li Chet Professional Services Committee Committee Member

15 Debbie Sim Siaw Yeng Professional Services Committee Committee Member

16 Walter Sandosam Academic Relations Committee Chairman

17 Dr. Nurmazilah Mahzan Academic Relations Committee Deputy Chairman

18 Chuah Lai Meng Academic Relations Committee Committee Member

19 Lim Hooi Hoon Academic Relations Committee Committee Member

20 Monnie Goh Academic Relations Committee Committee Member

21 Narayanan Annamalai Chettiar Academic Relations Committee Committee Member

22 Mohamed Farook Nasar Research and Technical Advisory Committee Chairman

23 Renganathan Narasingham Research and Technical Advisory Committee Committee Member

24 Alina Osman Research and Technical Advisory Committee Committee Member

25 Nik Shahrizal Sulaiman Research and Technical Advisory Committee Committee Member

26 Amos Law Chih Chien Research and Technical Advisory Committee Committee Member

Beginning Auditors Tools and Techniques WorkshopIIA Malaysia has always strived to encourage its members to become a

successful auditor by having a strong base of knowledge and

understanding of basic auditing skills. The “Beginning Auditors Tools and

Technique” workshop presented by Chua Chang Moo was held on 21-24

May 2012 and attended by 21 participants. This workshop proved to be

one of the best platforms especially for new auditors to learn the ins and

outs of an audit from the beginning.

Chua Chang Moo explaining the basic points of auditing

List of Retiring Board of Governors and Working Committees for 2011/2012

Issue 2 Apr – Jun 2012 • KEEPING IN TOUCH 10

events

Suresh D. outlining the key points of Forensic Accounting and Auditing

Datin Josephine and Datuk Mohd Nasir exchanging tokens of appreciation

Zulfa Abdul Rahman (second from left), Iszudin Mohd Amin (third from left), Datuk Mohd Nasir Ahmad (fourth from left), Datin

Josephine Low (fifth from left) and IIA Malaysia Secretariat staff

11 KEEPING IN TOUCH • Issue 2 Apr – Jun 2012

events

One of IIA Malaysia’s esteemed speakers, Suresh D., presented a

one-day seminar on “Introduction to Forensic Accounting and

Forensic Auditing” that was held on 5 June 2012. The seminar, which

is a joint venture effort with ACCA Malaysia, aimed to give a

comprehensive view of what the field of forensics holds for

accountants as well as auditors. This seminar was attended by 35

participants consisting of both IIA Malaysia members and ACCA

Malaysia members.

The Malaysian Institute of Accountants, led by its President Datuk

Mohd Nasir Ahmad and accompanied by Zulfa Abdul Rahman, Head,

Professional Accountants in Business and Islamic Finance and Iszudin

Mohd Amin, Head, Corporate Communications, visited IIA Malaysia as

part of MIA’s efforts in liaising with various stakeholders. The

discussions during the visit provided both organisations with the

opportunity to better understand and explore collaborative plans to

enhance the value of both accountants and internal auditors.

Seminar on Introduction to Forensic Accounting and Forensic Auditing

Visit by the Malaysian Institute of Accountants

DisclaimerOpinions expressed herein do not necessary represent those of IIA Malaysia. Neither the 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 concern 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: Blue�sh Design

Issue 2 Apr – Jun 2012 • KEEPING IN TOUCH 12

events

On 14 June 2012, IIA Malaysia organised a workshop entitled

“Changing Needs for Compliance Auditing: Improving

Techniques, Skills and Reporting Style for Better Results and

Assurance Workshop”. The workshop, presented by Steven Yee,

aimed to highlight the changes in compliance auditing. The

workshop was attended by 19 participants from various fields.

Changing Needs for Compliance Auditing: Improving Techniques, Skills and Reporting Style for Better Results and Assurance Workshop

Steven Yee answering questions on compliance auditing

Bursa Malaysia’s Half Day Governance Programme

BIM’s Professional Forum (ProF)

On 18 June 2012, IIA Malaysia in partnership with Bursa Malaysia,

organised a half day programme entitled “Corporate Governance

Blueprint and Malaysian Code on Corporate Governance 2012”. The

programme was conducted by a group of panelists comprising Datin

Josephine Low, IIA Malaysia’s President, Lee Min On, Mohd. Khaidzir

Shahari, Nickson Choo as well as Philip Satish Rao. There were some 240

participants from various fields, mostly in high managerial levels such

as Company Directors, Chief Executive Officers, and Managing

Directors. One of the main objectives for this programme is to introduce

the Malaysian Code on Corporate Governance 2012 to all the directors

and to enhance the directors’ awareness of current trends,

developments and issues relating to corporate governance practices.

Balai Ikhtisas Malaysia (BIM) launched its Professional Forum

(ProF) on 12 June 2012 at Seri Perdana, Putrajaya. YAB Dato Sri

Najib Tun Razak, BIM’s Patron, hosted the event at Sri Perdana

and member-institutions including IIA Malaysia, were invited to

attend this function. BIM’s objective is to bring professionals

from different fields together to consult and consider the

common problems as well as facilitate the interchange of

information or ideas between different professions. Y.A.B. Dato’ Seri Mohamed Najib Tun Abdul Razak, Perdana Menteri Malaysia presenting his address

Khaidzir kicking off the session with a briefing on the Corporate Governance Blueprint

The esteemed panelists (from right Lee Min On, Datin Josephine, Nickson, Khaidzir and Philip)

13 KEEPING IN TOUCH • Issue 2 Apr – June 2012

technical

How Green Is Your Internal Audit ‘Tick’

Research shows many internal auditors

are not into a ‘green’ agenda in their

planning or engagements: either

today or in their future planning.

Those delegates who attended Woo Chi Mun’s Concurrent

Session on the role of internal auditing in sustainability, at The

IIA’s International Conference in Kuala Lumpur in 2011, should

be very pleased with their choice of cutting edge guidance

into sustainability: its issues, and the assurance and consulting

services in some internal audit functions are a growing activity.

Though, not all internal auditors are adopting such a role.

Research, both by myself and others, shows many internal

auditors are not into a ‘green’ agenda in their planning or

engagements: either today or in their future planning.

The IIA (2005) reported results from a survey into internal

auditing involvement in sustainable development.

Respondents were mainly from the US though there were a

few from outside. Though only a small response (155) the

respondents came from a wide cross section of industries, and

Deloitte/IIA-UK & Ireland) (2008) research in the United

Kingdom recognised assurance over corporate social

responsibility/ environmental management as providing a key

challenge to the business, and a big growth area for internal

auditors. Respondents reported 25% involved in CSR

assurance/consulting now and forecast growth to 66% by 2012.

More recently, PricewaterhouseCoopers (2010) survey covering

50 territories and 2000 respondents reported 92%

some/active/integrated internal audit coordination with risk

and compliance functions and activities: yet, only 51% some/

actively/integrated coordination with environmental

sustainability. This moves internal audit closer to the UK

forecast growth for 2012 but is still low compared with internal

audit’s defined role in governance, risk management and control,

which must by its nature include the sustainability of its

organisation in today’s and tomorrow’s environments.

The IIA’s own Research Foundation (IIARF), established in the

1970s, has promoted and sponsored international research

into the internal auditing role in governance, risk management

and control, including their influence and impact on

sustainability. Accordingly, the IIARF has now a significant

library of conclusions and recommendations on this role. Its

latest such research paper – Sustainability and Internal Auditing

(2006)i – develops a model of internal auditing relevant to

sustainability in emerging markets today. In a case study,

developed by the researcher, internal auditors are declared to

have the following opportunities to demonstrate added value

to their sustainable organisation:

89% responded their organisations had a written code

of conduct;

42% confirmed that this code contained sustainability

elements;

37% agreed that their internal audit function is

involved in establishing and promoting sustainability

objectives in their organisation;

52% stated their organisations had specialists in the

field of reviewing sustainable development.

17% stated their sustainability specialists were part of

internal audit.

Issue 2 Apr – June 2012 • KEEPING IN TOUCH 14

technical

• Assist in the design/implementation of the

sustainability management system.

• Assist in creating sustainability awareness or

training employees.

• Perform limited scope audits requested by top

management.

• Perform supply chain audits.

• Perform compliance audits.

• Advise on the appointment of outside assessors.

• Coordinate audit activities by external assessors.

Roles auditors can play include:

The IIA (2010) in its latest statements on CSR and internal auditing

-Practice Guide Evaluating Corporate Social Responsibility/

Sustainable Development brings together and updates its past

guidance for internal auditors in their assurance, facilitation and

consulting roles in adding value to sustainability strategies in their

organisations. In its introduction it emphasises:

Internal auditors should understand the risks and controls related

to CSR objectives. Where appropriate, the CAE [Chief Audit

Executive] should plan to audit, facilitate control self-assessments,

verify results, and consult on the various subjects. Internal auditors

should maintain the skills and knowledge necessary to understand

and evaluate the governance, risks, and controls of CSR strategies.

This Guide introduces two approaches to auditing sustainability-

auditing by [CSR] element and auditing by stakeholder group.

Elements are listed and discussed as – governance, ethics,

environment, transparency, health, safety, security, human rights,

work conditions, community investment. Stakeholders are listed

and discussed as – employees and their families, environment,

customers, suppliers, communities, shareholders, investors.

Both approaches can be as separate engagements or as part of a

functional/system engagement. When developing sustainability

audit plans it suggests the following questions should always be

asked and developed into a programme of assurance to be

reported at board level:

- What is the proliferation of CSR information?

- Which CSR reporting standards have been adopted?

- How are CSR strategies and priorities established/

communicated?

- Are organisational CSR responsibilities documented for all

elements?

- Is the organisation signatory to any CSR standards of

performance?

Supporting the Guide’s definition of CSR elements is the United

Nations’ (UNGC (2110, p.17) definition of the term sustainability as

encompassing ‘...environmental, social and corporate governance

issues, as embodied in the United Nations Global Compact’s Ten

Principles.’ These ten principles cover areas of ‘human rights,

labour, the environment and anti-corruption’ This definition that

will dominate the CSR scene in the future.

Jeffrey Ridley

Professor of Auditing

London South Bank University

London, England

i See also Cutting Edge Internal Auditing by the author (2008) which includes a case study on Auditing Sustainable Development by the author of The IIARF research mentioned above.

2012NATIONAL CONFERENCE ON

INTERNALAUDITING

RISING POTENTIAL

22 – 23 October 2012Kuala Lumpur Convention Centre

Organised By:

IIA Malaysia CPD

30 POINTS

ANNOUNCEMENT

Keynote Address By:

YBhg Dato Dr Nik Ramlah MahmoodDeputy Chief Executive, Securities Commission Malaysia

RISKPLAN

AUDIT

7 August 2012, Tuesday • Prince Hotel & Residence Kuala LumpurSpeaker : Norman Marks • Duration : 1-day

10-11 September 2012 • Tentative Venue: Crowne Plaza Mutiara Hotel, Kuala LumpurSpeaker : James Roth • Duration : 2-days

RISK-BASED AUDITING AND REPORTING

2012TRAINING CALENDAR

July

August

September

October

30 - 31 Risk-Based Auditing : A Value Add Proposition Kuala Lumpur

6 - 9 Beginning Auditor Tools and Techniques Kuala Lumpur

7 Fraud Detection and Prevention* Miri

7 Building A Risk-Based Internal Audit Plan - What Matters to the Organisation Kuala Lumpur

9 Fraud Detection and Prevention* Sibu

13 Information System Auditing for Beginners* Penang

3 - 6 Beginning Auditor Tools and Techniques Kuala Lumpur

3 - 4 Forensics for Investigators Kuala Lumpur

3 Interpersonal Communication Skills Johor Bahru

3 - 4 Changing Needs for Compliance Auditing : Improving Techniques, Skills and Reporting Style for Better Results and Assurance Kuching

3 Risk Management and Internal Control* Ipoh

10 - 11 Risk-based Auditing and Reporting Kuala Lumpur

10 - 12 Setting-Up and Managing an E�ective Internal Audit Function Kuala Lumpur

12 - 13 Related Party Transaction Audit : Internal Control, Risk & Disclosure Requirements Kuala Lumpur

13 Fraud Detection and Prevention* Melaka

19 - 20 COSO-Based Internal Auditing Kuala Lumpur

25 - 26 Related Party Transaction Audit : Internal Control, Risk & Disclosure Requirements Kota Kinabalu

26 Creative Problem Solving & Decision Making Kuala Lumpur

26 - 27 Risk-Based Auditing : A Value Add Proposition Kuala Lumpur

1 - 4 Beginning Auditor Tools and Techniques Kuching

1 - 2 Black Hole of Assurance – Is Your Board and Audit Committee Aware of the Red Flags? Johor Bharu

1 - 2 Information Systems (IS) Auditing - Intermediate - The Next Stage Kuala Lumpur

1 Forensic Accounting & Fraud Auditing * Kuala Terengganu

2 - 3 Operational Auditing : Advanced Kuala Lumpur

3 - 4 Consulting : Activities, Skills & Attitudes Kuala Lumpur

8 - 11 Auditor-in-Charge Tools and Techniques Kuala Lumpur

9 Information System Auditing for Beginners * Johor Bharu

17 Talk on Unlocking the Value of Internal Audit – Deriving Synergy from Co- Sourcing Kuala Lumpur

22 - 23 2012 National Conference (Early Bird Registration is Now Open!) Kuala Lumpur

NEW

NEW

NEW

NEW

NEW

NEW

For further information on our training programmes, please visit our website: www.iiam.com.my

BUILDING A RISK-BASED INTERNAL AUDIT PLAN – WHAT MATTERS TO THE ORGANISATION

For more info e-mail to training@iiam.com.my

For more info e-mail to training@iiam.com.my

NEW